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The simple money multiplier Suppose that the Federal Reserve (the Fed) buys $50,000 of U.S. government bonds and the required reserve ratio is 0.20. If

The simple money multiplier

Suppose that the Federal Reserve ("the Fed") buys $50,000 of U.S. government bonds and the required reserve ratio is 0.20. If the assumptions of the simple money multiplier hold, this will

------- the money supply by __________________ .

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