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Suppose the desired reserve ratio is set at 10% in the banking system. What would be the total change in the deposits in the banking
Suppose the desired reserve ratio is set at 10% in the banking system.
- What would be the total change in the deposits in the banking system if the central bank sells $2 million government bonds to the bank?
What would be the total change in the deposits in the banking system if the central bank buys $1 million government bonds from bank A given that an additional 10% of any deposits are held as excess reserves?
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