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Suppose the Fed increases the money supply by $1 billion. If the reserve ratio is 10 percent, the ultimate change in the money supply due

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Suppose the Fed increases the money supply by $1 billion. If the reserve ratio is 10 percent, the ultimate change in the money supply due to the Fed's action, assuming banks loan out all excess reserves, is $2 billion. $300 billion. $10 billion. $122 million

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