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Business, 13.11.2019 04:31 xojade

If the reserve ratio is 8 percent, banks do not hold excess reserves, and people do not hold currency, then when the fed purchases $20 million of government bonds, bank reserves group of answer choices increase by $20 million and the money supply eventually increases by $250 million. decrease by $20 million and the money supply eventually increases by $250 million. increase by $20 million and the money supply eventually decreases by $250 million. decrease by $20 million and the money supply eventually decreases by $250 million.

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