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The most common way the Federal Reserve increases the money supply is by using its open market operation tool. Use two T-Accounts and some words

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The most common way the Federal Reserve increases the money supply is by using its open market operation tool. Use two T-Accounts and some words to explain how the Federal Reserve can increase the money supply through an open market operation. In your first T-Account, show your illustrative bank before the money supply has increased. In your second T-Account, show your illustrative bank after the money supply has increased. (20 points)

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