Suppose the Fed purchases $200 million of U. S. securities from the public but the reserve requirement is now only 10 percent, the currency holdings of the public are unchanged, and banks have zero excess reserves both before and after the transaction, the total impact on the money supply will be a

Therefore the supply of money is directly increased by the purchase of $200 million security and the money creating potential is increased by $2 billion

Explanation:

The money created = Initial deposit × (1/r -1),

where r is the reserve requirement = 10% = 0.1 Initial deposit = $200 million.

Therefore: The money created = $200 million × (1/0.1 - 1) = $200 million × 9 = $1.8 billion.

Increase in money supply = $200 million + $1.8 billion = $2 billion

Therefore the supply of money is directly increased by the purchase of $200 million security and the money creating potential is increased by $2 billion

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'

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