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Can someone please write up a few sentences explaining the below question? Thanks! The Federal Reserve intends to increase nominal interest rates by reducing money
Can someone please write up a few sentences explaining the below question? Thanks!
The Federal Reserve intends to increase nominal interest rates by reducing money supply. Given a reserve requirement of 10% what would be the expected impact (given pre crisis banking world) on overall bank lending if the Fed sold (repod) $500 million U.S. treasury securities?
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