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The Federal Reserve has decided that interest rates need to be increased to maintain relatively low inflation in the economy. To accomplish this goal, the

The Federal Reserve has decided that interest rates need to be increased to maintain relatively low inflation in the economy. To accomplish this goal, the Fed has determined that the money supply needs to decrease by $188 billion. It wants to implement this decrease by working through reserves at the financial institutions. Assume that the current reserve requirement is 6% and applies to all deposits. By how much must reserves be decreased for the Fed to accomplish its goal?

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