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True or False A2-3. Imagine an economy that keeps all of its money in the form of deposits in a banking system that has a

True or False A2-3. Imagine an economy that keeps all of its money in the form of deposits in a banking system that has a 5% reserve ratio. If the central bank buys 10B of government bonds from the banking system, then loans, deposits and the money supply will increase by 200B when the banking system returns to equilibrium. [Hint: Include a bank system balance sheet that shows the changes to the various categories.] INCLUDE THE BANK BALANCE PLS

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