Assume that the required reserve rate is ten percent, banks want to hold excess reserves in an amount that equals three percent of deposits, and the public withdraws ten percent of every deposit in cash. An open market purchase of $1 million by the Fed will see banking system deposits increase by how much?<\/p>
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How can i calculate exactly how much the banking deposits will increase by?<\/p>", "transcribed_text": "", "related_book": { "title": "Intermediate Microeconomics", "isbn": "978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968", "edition": "9th edition", "authors": "Hal R. Varian", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/649.jpg", "uri": "\/textbooks\/intermediate-microeconomics-9th-edition-649", "see_more_uri": "" }, "free_related_book": { "isbn": "1612056628", "uri": "\/textbooks\/profit-pathology-and-other-indecencies-1st-edition-978-1612056623-119908", "name": "Profit Pathology And Other Indecencies", "edition": "1st Edition" }, "question_posted": "2024-06-13 08:08:59", "see_more_questions_link": "\/study-help\/questions\/business-general-management-2023-February-20", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/do-a-google-search-for-the-aicpa-top-ten-technologies", "description": "Do a Google search for the AICPA Top Ten Technologies. Investigate the most recent list; describe the process used to develop the list. 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