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Scenario B: So you decide to inject $100 billion in reserves via open market purchases with phone in hand. Recall, the Chair said to watch
Scenario B:So you decide to inject $100 billion in reserves via open market purchases with phone in hand. Recall, the Chair said to watch that multiplier and so you start making some calls. Just as you suspected, the banks aren't making any loans, that is, they are sitting on all $100 billion in excess reserves.
Given these new conditions from SCENARIO B, answer #4-6.
What is the MB?
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