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Business, 26.05.2021 01:10 raniacakes

Answer the question on the assumption that the legal reserve ratio is 20 percent. Suppose that the Fed sells $500 of government securities to commercial banks (paid for out of commercial bank reserves) and buys $500 of securities from individuals, who deposit the cash in checking accounts. As a result of the given transactions, the supply of money in the economy will

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Answer the question on the assumption that the legal reserve ratio is 20 percent. Suppose that the F...
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