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7. If the Fed buys all the bonds from the bank in the previous question, show the new balance sheet for the bank after it
7. If the Fed buys all the bonds from the bank in the previous question, show the new balance sheet for the bank after it achieves equilibrium.
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Construct a bank balance sheet for a bank in equilibrium when the required reserve ratio is 10%. The bank has $100,000 in deposits. The public holds $50,000 in currency. The bank has equal amounts of loans and bonds.
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