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Suppose the reserve requirement ratio is 0.10 and the central bank carries out an open market purchase of government bonds with Bank A in the

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Suppose the reserve requirement ratio is 0.10 and the central bank carries out an open market purchase of government bonds with Bank A in the amount of $5,000. Instructions: Round your answers to two decimal places. a) How much of this $5,000 does Bank A lend out? b) Assuming all of these new loans end up as new deposits in Bank B, how much can Bank B lend out? 5 c) As the process of banks creating loans and deposits continues, the additional contribution to the increase in moncy supply for each subsequent bonk gets d) The total uitimate increase in the money supply as a result of an open market purchase of $5,000 when the reserve requirement fatio is 0.10 is $

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