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if the federal reserve purchases $5billion of Treasuries from the banking system, by how much will the money supply change assuming currency ratio is .25
if the federal reserve purchases $5billion of Treasuries from the banking system, by how much will the money supply change assuming currency ratio is .25 and the excess reserve ratio is .025
Currency=$100b
Deposits $400b
Required reserve ratio 10%
Excess reserves= $10b
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W Melicher, Edgar Norton
13th Edition
0470128925, 9780470128923
