Post a New Question

macro

posted by .

what would happen to the money supply if the federal reserve made an open market sale of 5 million worth of gov't securities to a private citizen? assume that the bank with which this private citizen does business with is all loaned up, has reserves of 20 million dollars, deposits of 100 million dollars and must follow a required reserve policy of 20%

A "Bernadette" posted (almost) this same question on Sunday, Oct 15. See my response.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

More Related Questions

Post a New Question