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Assume that the banking system is loaned up and that any ope

Paper help Economics Assume that the banking system is loaned up and that any ope

Economics

Assume that the banking system is loaned up and that any ope

Assume that the banking system is loaned up and that any open-market purchase by the Fed directly… Show more Assume that the banking system is loaned up and that any open-market purchase by the Fed directly increases reserves in the banks. If the required reserve ratio is 0.2, by how much could the money supply expand if the Fed purchased $2 billion worth of bonds? • Show less

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