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Suppose that for every open-market operation in the amount of $1, money supply increases by $3, i.e., an open-market purchase of $1 will increase money
Suppose that for every open-market operation in the amount of $1, money supply increases by $3, i.e., an open-market purchase of $1 will increase money supply by $3 and an openmarket sale of $1 will reduce money supply by $3. This means that money multiplier is xed and is equal to 3. The Fed's balance sheet is Federal Reserve Bank Assets Liabilities Securities 3 900 Currency held by nonbank public 3 100 Gold 100 Vault cash held by banks 100 Reserve deposits 200 Total assets 31* Total "abilities $10. i and the commercial banks' balance sheet is ______________ Consolidated Balance Sheet of Banks ______.__I Aeeete Llabllltlee Vaultcash $100 Deposits $3000 Reserve deposits 200 Loans 2700 Total assets sun Total liahllltiee m _____________- If the Fed wants to increase money supply by 15%, then it has to buy government bonds in the amount of Note: Type in your answer rounded to two decimal places, i.e., your answer must be of the form \"999.99\". I will not be able to x correct answers that were entered incorrectly, such as \"999.999\" or \"999, 99\" or "999". in case the last digit in the correct answer is zero, e.g., \"999.90\" or \"999.00\
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