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The desired reserve ratio is 1 0 % . A bond dealer purchases $ 1 5 0 , 0 0 0 worth of Canadian government
The desired reserve ratio is
A bond dealer purchases $ worth of Canadian government securities electronically debiting the dealer's deposit account at Reliable Bank.
Which of the following correctly describes the immediate effect of this transaction on the money supply?
A The money supply decreases by $
B The money supply decreases by $
C The money supply decreases by $
D There is no change in the money supply.
E None of the above.
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