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Business, 12.02.2020 03:16 perezsamantha3oqr0za

Assume that the reserve requirement ratio is 12 percent and that the Fed uses open market operations by purchasing $200 million worth of Treasury securities. Assuming that banks use all funds except required reserves to make loans and that the public does not store any cash, the money supply should by about .
a. increase; $200 million.
b. increase; $1.67 billion.
c. decrease; $200 million.
d. decrease; $1.67 billion.

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