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ps s Sign up The Death penalty M capial punishment My Studies-vindale HH Holmes-Mude wweu cemralltonn 4Prtintwd A lower reserve requirement associated with a money
ps s Sign up The Death penalty M capial punishment My Studies-vindale HH Holmes-Mude wweu cemralltonn 4Prtintwd A lower reserve requirement associated with a money supply. suppose the Federal Reserve wants to increase the money supply by $100. Again, you can assume that banks do not hold excess eeserves and thet households do not hold currency. If the reserve requirement is 10%, the Fed wil use open-market operations to B u.S. government bonds. Now, suppose that, rather than immediately lendengout all excess reserves, banks begn holding some excess reserves due to uncmtsan edaturric conditions. Specifically, banks increase the percentage of deposits held as reserves from 10% to 20% This increase in the feserve ratio causes the money multipl to to Under these ndtions, the Fed would need to s worth of us gove me bonds in order to increase the money supply by $100. which of the following statements help to explain wtw. the real world, the Fed cannot precisely control the money supply?oheck aw mar amly The Fed cannot control the amount of money that households choose to hold as cumency The red cannot control whether and to what extent bankshokiexcess reserves. The Fed cannot prevent banks from lending out required reserves. Grad
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