Ask Question
3 January, 13:15

If the federal reserve sells $50000 in treasury bonds to a bank at 8% interest, what is the immediate effect on thhe money supply?

+1
Answers (1)
  1. 3 January, 13:25
    0
    We assume, that the number 500000 is 100% - because it's the output value of the task. so we can write it down as 50000=%100. %8=x (immediate effect on money supply). Now we have 2 simple equations to solve.

    50000=100 & x=8

    50000/100=x/8

    cross multiply

    100x=4,000,000

    x=4,000,000 : 100

    x=40,000

    40,000 is the immediate effect on the money supply
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “If the federal reserve sells $50000 in treasury bonds to a bank at 8% interest, what is the immediate effect on thhe money supply? ...” in 📗 Mathematics if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers