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Business, 02.04.2021 02:30 katier9407

Suppose that the Fed buys $5,000 bonds from Bob. In return for the bonds, it gives Bob a check for $5,000. Suppose Bob saves the check in Bank A and the excess reserve ratio for all banks is 80%. Assume that all banks including Bank A loan out all its excess reserve to people and people save all the money in their bank. Assume that there are no currency drains in this question. What will be the total change in M1

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Suppose that the Fed buys $5,000 bonds from Bob. In return for the bonds, it gives Bob a check for $...
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