anonymous
  • anonymous
I will medal, I need help with economics please!
Mathematics
  • Stacey Warren - Expert brainly.com
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SOLVED
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jamiebookeater
  • jamiebookeater
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anonymous
  • anonymous
If the required reserve ratio is 20 percent and the Fed sells $10 million in securities, then the money supply will increase by $10 million. money supply will decrease by $10 million. foreign investment in US financial assets will decrease. money supply will increase by $50 million. money supply will decrease by $50 million.
anonymous
  • anonymous
Bro, did u even try it?
anonymous
  • anonymous
I did but I did not get any of the answers here

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anonymous
  • anonymous
show me your work
anonymous
  • anonymous
@Hayhayz help me help this poor lad
mathwizzard3
  • mathwizzard3
I would say either of the two last ones but this isn't really my subject :/
anonymous
  • anonymous
wait, will it increase by 50 million because 10/0.20 is 50?
anonymous
  • anonymous
I am confused with the process
anonymous
  • anonymous
Ive had enough of this nonsense
mathwizzard3
  • mathwizzard3
Sorry, this is why you shouldn't trust me on this.
anonymous
  • anonymous
Am I right or not?
anonymous
  • anonymous
@Hayhayz knows the answer to your situation, for she is the solution to all problems
mathwizzard3
  • mathwizzard3
probably increase that would be my best guess
mathwizzard3
  • mathwizzard3
sorry that I can't help much
amistre64
  • amistre64
when the fed sells securities, it sells money to banks ... the supply of money to loan out increases
anonymous
  • anonymous
thank you, will it be C then?
amistre64
  • amistre64
your options are not labeled by letters here
anonymous
  • anonymous
money supply increases by 50 million
amistre64
  • amistre64
if i recall correctly, the money supply would increase more than the amount sold ... so as an educated guess i would go with that as well - since i dont recall the formulas for it from soo long ago :)
anonymous
  • anonymous
ok :) thank you
amistre64
  • amistre64
we have 8mil we can offer since we have to hold back 20% of it when the loans are repaid, we can loan out 8(.8) of it again, and then again ... it becomes a geometric sequence 8/(1-.8) = 40 is what i would have thought of if i didnt have options. so 50 seems reasonable to me

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