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Home Q & A Board Other Fields Homework Help Business Economics
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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 5%. In theoretical limit, the money supply could
A) decrease by $5 billion.
B) increase by $5 billion.
C) increase by $20 billion.
D) decrease by $20 billion.
Textbook 
The Economic Way of Thinking

The Economic Way of Thinking


Edition: 13th
Authors:
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SydnieSydnie
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#1
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8 years ago
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Sublight2097 Author
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#2
8 years ago
I've noticed they use a lot of trickery with their questions. Thank you for your input.
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