Multiple Choice
When the desired reserve ratio is 10 percent,suppose the Fed buys $1,000,000 of government securities from banks.As a result,the banks' excess reserves
A) increase by $900,000.
B) increase by $1,000,000.
C) increase by $10,000.
D) decrease by $10,000.
E) decrease by $1,000,000.
Correct Answer:
Verified
Correct Answer:
Verified
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