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Posts: 4132
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4 years ago
Suppose the Fed buys $1 billion worth of bonds and the required reserve ratio is 20%. In the theoretical limit, the money supply could
A) decrease by $1 billion.
B) increase by $1 billion.
C) increase by $5 billion.
D) decrease by $5 billion.
Textbook 
The Economic Way of Thinking
Edition: 13th
Authors:
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4 years ago
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3 years ago
Seriously, you've been tremendously helpful! Thank you.
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3 years ago
Glad to see things worked out Wink Face Till next time...
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