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OpenStudy (anonymous):
help!! If the Federal Reserve sells $40,000 in Treasury bonds to a bank at 5% interest, what is the immediate effect on the money supply?
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OpenStudy (paki):
what u want to find...?
OpenStudy (anonymous):
is it increased or decreased and by what 40,000 or 42000
OpenStudy (anonymous):
nvm it decreases 40
OpenStudy (paki):
5% of 40,000 is 2000... and (40,000-2000)*100 / 40000 = 95% decrease
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