Business, 27.03.2020 01:55 kianarice55otaivh

Suppose the Fed buys $100,000 of U. S. Treasury bonds from Bill Gates. If the reserve requirement is 10 percent, the currency holdings of the public are unchanged, and banks have zero excess reserves both before and after the transaction, the total impact on the money supply will be

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Answer from: teresaswinger

an increase by $1,000,000.

Explanation:

Suppose the Fed buys $100,000 of U.S. Treasury bonds from Bill Gates. If the reserve requirement is 10 percent, the currency holdings of the public are unchanged, and banks have zero excess reserves both before and after the transaction, the total impact on the money supply will be an increase by $1,000,000.

Answer from: avaleasim

an increase by $1,000,000.

Explanation: As part of its monetary policy the Fed decides the reserve requirements for banks which has an effect on multiplier effect and ultimately on money supply.

The money multiplier effect is a reciprocal of the reserve requirement, thus, when the reserve requirement is 10%, the multiplier effect is 10 [1 / (10/100)]

The reserve requirement is currently 10%, and the Federal Reserve makes an open market purchase of $100,000 worth of US treasury bonds from Bill Gates. The maximum amount the money supply could increase because of this purchase is $1,000,000.

This is gotten by determining the multiplier is 1/10%, which is 10.

Then applying: Change in Money Supply = Change in Reserves * Money Multiplier, the maximum change in the money supply is:

$100,000 * 10 = $1,000,000

Answer from: Quest

$527.7.if the following was the question $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

Answer from: Quest

Answer the difference between the highest price a consumer is willing to pay for goods and the price the consumer actually pays

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Suppose the Fed buys $100,000 of U. S. Treasury bonds from Bill Gates. If the reserve requirement is...

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