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Hello, can you help me with this question please? Assets (millions) Cash (Reserves) U.S. Govt Bonds Total Assets Bank 2 Liabilities & Equity (millions) 105
Hello, can you help me with this question please?
Assets (millions) Cash (Reserves) U.S. Govt Bonds Total Assets Bank 2 Liabilities & Equity (millions) 105 Deposits 175 Total Liabilities & 280 Equity 280 280 Use the table. Suppose the Federal Reserve sells 35 million worth of bonds to Bank 2, If Bank 2 has required reserves of 20%, then how much does the money supply change as a result of this transaction? O O (3 It decreases by 175 million. It increases by 175 million. It decreases by 14 million. It increases by 14 million.
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