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Problem

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question

Suppose the government runs a budget deficit of 30bil−lion,andtheFEDdoesnotwanttoincreasethemoneysupplybymorethan30 bil-lion, andthe FED does not want to increase the money supply by morethan 40 billion. By how much must the national debt increase? Assume that the legal reserve requirement of the bank-ingsystem is 20%.
Plain-text mathematical notation (without MathML)
Suppose the government runs a budget deficit of 30bil−lion,andtheFEDdoesnotwanttoincreasethemoneysupplybymorethan40 billion. By how much must the national debt increase? Assume that the legal reserve requirement of the bank-ingsystem is 20%.
Original LaTeX notation
Suppose the government runs a budget deficit of $30 bil-lion, andthe FED does not want to increase the money supply by morethan $40 billion. By how much must the national debt increase? Assume that the legal reserve requirement of the bank-ingsystem is 20%.

category

economics

options

  1. $30 billion
  2. $22 billion
  3. $45 billion
  4. $35 billion
  5. $40 billion
  6. $50 billion
  7. $25 billion
  8. $10 billion
  9. $8 billion
  10. $15 billion

src

stemez-Economics

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