If the Required Reserve Ratio Is 0

question 134

Multiple Choice

If the required reserve ratio is 0.2,and the Fed buys $3,000 of U.S.government securities,the maximum amount by which the money supply can increase is:

• A)$200.
• B)$2,000.
• C)$600.
• D)$15,000.
• E)$1,500.

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