The Money Supply in Macroland Is Currently 3,000,bank Reserves Are

question 19

Multiple Choice

The money supply in Macroland is currently 3,000,bank reserves are 250,currency held by the public is 500,and the banks' desired reserve-deposit ratio is 10%.Assuming that the values of the currency held by the public and the desired reserve-deposit ratio do not change,if the Central Bank of Macroland wishes to decrease the money supply to 2,500,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:

Effect Size

A quantitative measure of the strength of a phenomenon, used to ascertain the practical significance of research findings.

Statistically Significant

A determination that a result from data analysis has a low probability of occurring by chance, indicating a meaningful difference or relationship.

Practical Importance

Refers to the relevance and applicability of an idea, research finding, or theory to real-world situations.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, commonly using the mean, median, or mode.