Answer:
The correct answer is letter "C": tax.
Explanation:
The Federal Income Tax is collected by the U.S. <em>Internal Revenue Service</em> (<em>IRS</em>) based on the annual earnings of individuals, corporations and all legal entities. It is considered to be the largest source of revenue for the government. In general, they are called taxes.
Answer:
2.75 million
Explanation:
Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank
Required reserves = reserve requirement x deposits
Increase in value of money supply as a result of the purchase is determined by the money multiplier
Money multiplier = 1 / reserve requirement
1/0.05 = 20
increase in money supply = amount of open market purchase / reserve requirement
55 / 20 = 2.75 million
