The Money Supply in Macroland Is Currently 2,500,bank Reserves Are

question 42

Multiple Choice

The money supply in Macroland is currently 2,500,bank reserves are 200,currency held by the public is 500,and the banks' desired reserve-deposit ratio is 10%.Assuming that the values of currency held by the public and the desired reserve-deposit ratio do not change,if the Central Bank of Macroland wishes to increase the money supply to 3,000,then it should conduct an open-market _________ government bonds to/from the public.

• A) purchase of 50
• B) purchase of 250
• C) purchase of 500
• D) sale of 50
• E) sale of 500

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Definitions:

Processed Further

Refers to additional operations or treatment applied to products beyond the initial production stages to enhance value or quality.

Intermediate Product

A product that requires further processing before it becomes a finished good.

Beet Juice

The liquid extracted from beetroot, often used as a natural colorant in food products, or consumed for its nutritional benefits.

Refined Sugar

Sugar that has undergone a process to remove impurities and unwanted components, resulting in pure, crystalline sucrose.