In the Simple Deposit Expansion Model,a Decline in Checkable Deposits

question 87

Multiple Choice

In the simple deposit expansion model,a decline in checkable deposits of $1,000 when the required reserve ratio is equal to 20 percent implies that the Fed

• A)sold $200 in government bonds.
• B)sold $500 in government bonds.
• C)purchased $200 in government bonds.
• D)purchased $500 in government bonds.

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Definitions:

Long-Term Memory

A type of memory capable of storing information for long periods, even a lifetime, involving facts, experiences, and skills.

Past Assumptions

Previous beliefs or ideas assumed to be true without concrete evidence.

Repression

A defense mechanism in psychoanalytic theory in which unpleasant thoughts, memories, or feelings are pushed out of the conscious mind.

Repression

A defense mechanism in which unpleasant thoughts, feelings, or desires are excluded from conscious awareness.