What is the change in the money supply when the Fed purchases $700 worth of bonds and the required reserve ratio is 14

What is the change in the money supply when the Fed purchases $700 worth of bonds and the required reserve ratio is 14 percent assuming banks hold no excess reserves?

ANSWER: 

Money multiplier m=1/1-r

where r is required reserve ratio

When fed purchases $700 of bonds, it gets 700 money supply.

Change in money supply =mulipler*700

=1/(1-0.14)*700

=$5,000

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