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Got the first part correct just need help with the second one, thank you! a. Assume also that borrowers eventually return all of these funds

Got the first part correct just need help with the second one, thank you! image text in transcribed
a. Assume also that borrowers eventually return all of these funds to their banks in the form of transaction deposits. What is the full effect of this purchase on bank deposits and the money supply? b. What is the full effect of this purchase on bank deposits and the money supply if borrowers return only 90 percent of these funds to their banks in the form of transaction deposits? (For all requirements, enter your answers in billions. Round your final answers to 2 decimal places. (i.e. 5,500,000,000 should be entered as 5.50).) a. Increase b. Increase in bank deposits and money supply in bank deposits and money supply $ $ 5.70 billion 5.70 billion

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