If the banking system has a reserves ratio of 23% and the Fed purchases $651 worth of government bonds from the public, what will be the increase in the money supply?
If the banking system has a reserves ratio of 23% and the Fed purchases $651 worth of government bonds from the public, what will be the increase in the money supply?
Chapter19: Money Creation
Section: Chapter Questions
Problem 11SQP
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If the banking system has a reserves ratio of 23% and the Fed purchases $651 worth of government bonds from the public, what will be the increase in the money supply?
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