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what is the answer Consider an open market purchase by the Fed of $5 billion of Treasury bonds. What Is the Impact of the purchase

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Consider an open market purchase by the Fed of $5 billion of Treasury bonds. What Is the Impact of the purchase on the bank from which the Fed bought the securities? The bank's securities ((Click to select) : by $5 billion and its reserves ((Click to select) ! ) by $5 billion. Compute the impact on M1 assuming that: (1) the required reserve ratio is 10 percent; (2) the bank does not wish to hold excess reserves; and (3) the public does not wish to hold currency. The simple deposit multiplier will be: The value of deposits (and M1) will (Click to select) !) by $ billion. MacBook V O N Y U P W EE R S D F G H K X B N M Z all cmd cmd 36

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