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Assume that the reserve ratio in the economy is 7%. If the Federal reserve buys bonds worth $10 million from a commercial bank, then all

Assume that the reserve ratio in the economy is 7%. If the Federal reserve buys bonds worth $10 million from a commercial bank, then all else equal, the corresponding change in deposits (following economy-wide bank-by-bank deposit expansion) equals

$10 million

$70 million

$142.86 million

$700 million

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