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Suppose the Central Bank sells $8 million worth of bonds. Calculate the money multiplier in each case. Also calculate what is the maximum possible change

Suppose the Central Bank sells $8 million worth of bonds. Calculate the money multiplier in each case. Also calculate what is the maximum possible change in the money supply if the required reserve ratio is: (5 marks - 0.5 marks each entry)

Required Reserve Ratio Money Multiplier Change in Money Supply (millions)

10%

20%

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