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Suppose that the Federal Reserve purchases a bond for $100,000 from Heggle Rich, who deposits the proceeds in the Manufacturer's National Bank Initially, as a

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Suppose that the Federal Reserve purchases a bond for $100,000 from Heggle Rich, who deposits the proceeds in the Manufacturer's National Bank Initially, as a result of this bond purchase, the money supply will by s Suppose the required reserve ratio is 10% As the result of Rich's deposit, Manufacturer's Bank will be able to extends in additional loans As a result of this purchase by the Fed, the maximum increase in the quantity of checkable deposits that could result throughout the entire banking system is

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