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

question 79

Multiple Choice

In the simple deposit expansion model,a decline in checkable deposits of $1,000 when the required reserve ratio is equal to 10 percent implies that the Fed

• A)sold $1,000 in government bonds.
• B)sold $100 in government bonds.
• C)purchased $1,000 in government bonds.
• D)purchased $100 in government bonds.

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Definitions:

Zero

A numerical value representing the absence of any quantity or magnitude.

Expert Validity

Validity as judged by relevant experts.

Face Validity

A question or measure that appears to capture the concept it is intended to capture. See also expert validity and panel validity.

Likert-Type Scales

A response scale used in surveys to gather information on a participant's level of agreement or preferences towards a statement.