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please show all work Through its open market operations, the Federal Reserve recently increased deposits at financial institutions by $90 billion. If the reserve requirement
please show all work Through its open market operations, the Federal Reserve recently increased deposits at financial institutions by $90 billion. If the reserve requirement for all deposits is 10 percent, what is the maximum effect that the Fed's actions can have on total deposits? The real risk-free rate, r". is 2.5%. Inflation premium is expected to be 3% a year. Assume that there is no maturity risk premium. An 8-year corporate bond has a yield of 7.8%, which includes a liquidity premium of 0.8%. What is its default risk premium
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