Multiple Choice
The Fed conducts an open market purchase of securities of $5,000.If the currency drain ratio is 0 percent and the desired reserve ratio is 10 percent,then the total increase in the quantity of money is
A) $5,000.
B) $20,000.
C) $50,000.
D) $10,000.
E) $4,000.
Correct Answer:
Verified
Correct Answer:
Verified
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