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Assume that the reserve requirement is 8.0 percent and that the Fed uses open market operations by buying $300 million worth of Treasury securities.Also assume
Assume that the reserve requirement is 8.0 percent and that the Fed uses open market operations by buying $300 million worth of Treasury securities.Also assume that banks use all of the funds except required reserves to make loans and that the public does not store any cash.Determine by how much the money supply should increase.Show your work.
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