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$24$U $40075-$ECON$2$O$4-$W$-$MACROECONOMICS

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Assuming a reserve requirement of $20$ percent, if the Fed sells $$20$ billion in bonds in the open market, the lending capacity of the system will eventually

a$.$ decrease by $$1$ billion.

b$.$ decrease by $$100$ billion

$c$ increase by $$1$ billion.

d$.$ increase by $$100$ billion.

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