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Business, 19.12.2019 02:31 Brennen432

Suppose that the federal reserve purchases a bond for $100,000 from reggie rich, who deposits the proceeds in the manufacturer’s national bank. initially, as a result of this bond purchase, the money supply will by$.suppose the required reserve ratio is 25%.as the result of rich’s deposit, manufacturer’s bank will be able to extend$in additional loans. as a result of this purchase by the fed, the maximum increase in the quantity of checkable deposits that could result throughout the entire banking system is$

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