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If the reserve ratio is 25%, what will be the change in the money supply if theFed buys $8 million in bonds from the bank?

If the reserve ratio is 25%, what will be the change in the money supply if theFed buys $8 million in bonds from the bank?

A. increase of $8 million

B. increase of $32 million

C. increase of $2 million

D. decrease of $8 million

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