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Suppose the reserve requirement for the United States is 12%. Instructions: Round your answers to the nearest whole number. a. Suppose the Federal Reserve wants
Suppose the reserve requirement for the United States is 12%. Instructions: Round your answers to the nearest whole number. a. Suppose the Federal Reserve wants to increase the money supply. What should it do to accomplish this goal? The Fed could make an of $40 billion, resulting in a total increase in the money supply of $ billion. b. Now suppose the Fed wants to decrease the money supply. What should it do to accomplish this goal? The Fed could make an of $30 billion, resulting in a total decrease in the money supply of $ billion
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