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Author Question: The Federal Reserves Tools of Monetary ControlAssume there is no leakage from the banking system and ... (Read 85 times)

rubiosusy7

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on: Nov 23, 2022
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
Macroeconomics ¦ Acemoglu, Laibson, List ¦ 3rd Edition
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Marked as best answer by rubiosusy7 on Nov 23, 2022

dsfhkjdfaskjfdsjk

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Reply #1 on: Nov 23, 2022
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rubiosusy7

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Reply 2 on: Nov 23, 2022
Great answer, keep it coming :)

Dominic

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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