Suppose Richard Branson withdraws $5 million from his checking account at Bank of America. If the required reserve ratio is 25%, what is the maximum change in deposits in the banking system?
Isabel purchases a $1,000 face value one-year Treasury bill for $934.58, and the next day investors decide they will only buy one-year Treasury bills if they receive an interest rate of 9%. If Isabel decides to sell her Treasury bill to another investor the day after she purchased it, she will recieve ??
When the Fed makes an open market purchase, long-term real interest rates will ________, which will ________ GDP.