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.