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Suppose we have the following information. The Federal Reserve buys an additional $50 billion of government securities using its open market operations. Also, assume that

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Suppose we have the following information. The Federal Reserve buys an additional $50 billion of government securities using its open market operations. Also, assume that the reserve to deposit requirement is 0.2. If banks hold no excess-reserves (they lend out every dollar possible), which of the following is true concerning bank deposits? O A. Total deposits expand by $250 billion. B. Total deposits expand by $200 billion. C. Total deposits contract by $10 billion. D. Total deposits contract by $100 billion. O E. Total deposits expand by $225 billion

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