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Q6: Assume that the FED extends $5m worth of new discount loans to the banks. Enter the revised numbers that reflect this transaction in the
Q6: Assume that the FED extends $5m worth of new discount loans to the banks. Enter the revised numbers that reflect this transaction in the two T-accounts below. Assets Liabilities Reserves Checkable Deposits Loans to businesses Discount Loans T - Securities Assets Liabilities Discount Loans Notes in circulation T - Securities Bank reserves How has the MB in the economy changed from its initial level? How has the total amount of bank reserves changed from its initial level
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