What will the money supply be? Suppose the Fed purchases a government - ProProfs Discuss
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What will the money supply be? Suppose the Fed purchases a government bond from a person who deposits the entire amount from the sale in her bank. The bank holds some of the deposit as excess reserves.



A. Rise less than the money multiplier would suggest
B. Rise more than the money multiplier would suggest
C. Fall less than the money multiplier would suggest
D. Fall more than the money multiplier would sugget

This question is part of Macroeconomics [Ch 1
Asked by Emy_, Last updated: Apr 27, 2020

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1 Answer

John Smith

John Smith

Answered Apr 08, 2017

Rise less than the money multiplier would suggest
 

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