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Assume that the banking system is loaned up and that any open-market purchase by the Fed directly increases reserves in the banks. If the required

Assume that the banking system is loaned up and that any open-market purchase by the Fed directly increases reserves in the banks. If the required reserve ratio is 0.2, by how much could the money supply expand if the Fed purchased $2 billion worth of bonds?

Can someone point to me in the right direction which equations to use and why it is applicable to this unique situation

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