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Assume that banks lend out all their excess reserves and individuals deposit all their money. If the Required Reserve Ratio is .20, what does the
Assume that banks lend out all their excess reserves and individuals deposit all their money. If the Required Reserve Ratio is .20, what does the Fed have to do to Increase the supply of money by $160 billion? Select one: O a. Sell $32 billion worth of government bonds to commercial banks O b. Sell $40 billion worth of government bonds to commercial banks O c. Sell $45 billion worth of government bonds to commercial banks O d. Buy $32 billion worth of government bonds from commercial banks O e. Buy $40 billion worth of government bonds from commercial banks Rolls Royce decides to focus most of its production on aircraft engines instead of cars because it is a less competitive and more profitable market. Which fundamental question of economics is Rolls Royce answering? Select one: O a. When to produce? O b. How to produce? O c. Why to produce? O d. For whom to produce? O e. What to produce
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