Suppose That the Fed Purchases $1,000,000 Worth of Bonds and That

question 370

Multiple Choice

Suppose that the Fed purchases $1,000,000 worth of bonds and that the reserve ratio is 25 percent. Then, the maximum potential expansion of deposits is

• A)$4,000,000.
• B)$10,000,000.
• C)$400,000.
• D)$25,000,000.

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Definitions:

Celebrity Suicides

The phenomenon where suicides of famous individuals may influence others to emulate the behavior through media exposure.

Altruistic Suicides

Suicides committed for the benefit of others or for the greater good, often in the context of pressures within a tightly knit community.

Anomic Suicides

Suicides that occur as a result of drastic changes in an individual's relationship to society, often due to feelings of disconnection or lack of social support.

Imitative Suicides

A phenomenon where suicides increase following the media reporting of an original suicide, as individuals imitate the act.