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Author Question: The Federal Reserves Tools of Monetary ControlAssume there is no leakage from the banking system and ... (Read 18 times)

rubiosusy7

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The Federal Reserves Tools of Monetary Control

Assume there is no leakage from the banking system and that all commercial banks are loaned up. The required reserve ratio is 16%. If the Fed buys $40 billion worth of government securities from the public, then the change in the money supply will be ________. (Round to the nearest hundredth when appropriate.)
◦ $250 billion
◦ $64 billion
◦ $16 billion
◦ -$6 billion


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Marked as best answer by rubiosusy7 on Nov 23, 2022

dsfhkjdfaskjfdsjk

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rubiosusy7

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Reply 2 on: Nov 23, 2022
Thanks for the timely response, appreciate it


bulacsom

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Reply 3 on: Yesterday
Wow, this really help

 

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