Answer:
A
Explanation:
By definition, open-market operations change the monetary base.
In this exercise, the Fed engages in open-market purchases, which means that the Fed expands the amount of money in the banking system. Therefore the monetary base will increase by an amount equal to the amount of open-market purchases.
So monetary base will increase by $3 billion.
Answer:
multiply by 3
Explanation:
it doesn't make sense at first but when you add it all up you get a solid3.1 but you round it to the nearest 10th and get 3
Answer:
B. I and II only
Explanation:
I. Regulatory changes allowing institutions to offer more services II. Technological improvements reducing the cost of providing financial services
In the equation of exchange, m x v = p x q, the v represents velocity the average amount of money in circulation the average frequency with which a dollar is spent the average price level quantity purchased. Velocity is the rate that money is exchanged in a given economy, the money is usally measured in a ratio format. To find the velocity, use the ratio of the gross national product over the companies supply of money that they have.
