Assume that the reserve requirement is 5 percent.

If the Federal Reserve buys $2,000 worth of bonds, the largest possible increase in the money supply is $

If someone deposits in a bank $2,000 that she had been hiding in her cookie jar, the largest possible increase in the money supply is $.

All other things equal, the money supply will expand more if the Federal Reserve buys $2,000 worth of bonds than if someone deposits in a bank $2,000 that she had been hiding in her cookie jar. True False

answer; /// i believe that the correct answer is (covenant;

the first one $24,630

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