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Sublight2097 Sublight2097
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8 years ago
Suppose the Fed buys $1 billion worth of bonds and the required reserve ratio is 10%. In the theoretical limit, the money supply could
A) decrease by $1 billion.
B) increase by $1 billion.
C) decrease by $10 billion.
D) increase by $10 billion.
Textbook 
The Economic Way of Thinking

The Economic Way of Thinking


Edition: 13th
Authors:
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SydnieSydnie
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8 years ago
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Sublight2097 Author
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#2
8 years ago
Another one in the books, marking it solved.
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