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Business, 27.03.2020 00:40 hatl

Suppose the Fed conducts an open market sale of $50 million in government securities. If the required reserve ratio is 20%, what is the maximum change in the money supply? Assume that banks try not to hold excess reserves and there is no currency withdrawal from the banking system.

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Suppose the Fed conducts an open market sale of $50 million in government securities. If the require...
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