1.8. If the Fed buys $1 million of bonds from the First National Bank, but an additional...
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1.8. If the Fed buys $1 million of bonds from the First National Bank, but an additional 10% of any deposit is held as excess reserves, what is the total increase in checkable deposits? (Hint: Use T-accounts to show what happens at each step of the multiple expansion process.)
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The Economics Of Money Banking And Financial Markets
ISBN: 9780321598905
9th Edition
Authors: Frederic S. Mishkin
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