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10. (10 points) The Fed conducts an open market purchase of Treasury bonds worth $50 billion. Assume the reserve-deposit ratio is 5% in the US

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10. (10 points) The Fed conducts an open market purchase of Treasury bonds worth $50 billion. Assume the reserve-deposit ratio is 5% in the US and households don't hold currency. How will the money supply change from the Federal Reserve's purchases of these Treasury securities? The money supply will by [increase or decrease) [indicate amount)

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