Table 131 Refer to Table 13

Multiple Choice

Table 13.1 Refer to Table 13.1.Assume a reserve requirement of 8 percent.What is the maximum potential increase in the money supply from the Fed's purchase of $400 worth of government securities?

A) $62, 500
B) $2, 800
C) $3, 200
D) $4, 600
E) $400