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macroeconimics question 3. Assume that required reserve ratio is 20%, and that cash is not a part of the commercial banks' legal reserve [c =

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macroeconimics question

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3. Assume that required reserve ratio is 20%, and that cash is not a part of the commercial banks' legal reserve [c = 0%}. a. To increase the money supply by $100, should the Fed buy or sell securities? __ And by hoyu.r much in the open market? _ b. To decrease the money supply by $200, could the Fed buy or sell securities? _____ By how much? ____

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