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explain it briefly Suppose the Reserve Bank of Australia conducts a $30 million open-market purchase of government bonds. a. If the required reserve ratio is

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explain it briefly

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Suppose the Reserve Bank of Australia conducts a $30 million open-market purchase of government bonds. a. If the required reserve ratio is 10 percent, what is the largest possible increase in the money supply that could result? Explain. (3 marks) b. What is the smallest possible increase? Explain. (2 marks)

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