What Is the Change in the Money Supply When the Fed

question 113

Short Answer

What is the change in the money supply when the Fed purchases $100 worth of bonds in a 100-percent-reserve banking system?

---

Definitions:

Sleep-deprived

A state resulting from not getting enough sleep, affecting mental, physical, and emotional functioning.

Microsleeps

Brief, unintended episodes of loss of attention associated with events such as blank stare, head snapping, and prolonged eye closure, which may happen when a person is fatigued but trying to stay awake.

REM Sleep

A stage of sleep characterized by rapid eye movements and is associated with dreaming and brain activity similar to wakefulness.

Slow-wave Sleep

a phase of deep sleep, characterized by slow brain waves, that is important for restoring the body and brain, and consolidating new memories.