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1. Suppose the Bank of Canada wishes to increase the money supply by $100 million. What type of open market operation should it pursue? What

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1. Suppose the Bank of Canada wishes to increase the money supply by $100 million. What type of open market operation should it pursue? What should the dollar amount of the Bank's purchase or sale of bonds be in order for M to increase by $100 million? [Use the required information given in the next question.] Il. Use the information provided below to answer the following questions: Rd = 50 cud = 250 D = 500 1. What is the reserve ratio (0)? 2. What is the currency ratio (c )? 3. What is the size of the monetary base H (high-power/central bank money)? 4. How much is the money supply? 5. What is the money multiplier? 6. In the space below, fill in the information about the commercial bank's and central bank's balance sheets. Specifically, what is the dollar value of the bonds held by the commercial banks? What is the dollar value of the bonds held by the central bank? Central Bank's Balance Sheet Assets Liabilities Commercial Banks' Balance Sheet Assets Liabilities

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