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Business, 17.04.2020 22:48 f1refoxx

A hypothetical economy that uses a checkable-deposits-only monetary system has a required reserve ratio of 10%. When the central bank in this economy sells $10 million worth of Treasury bills, this will Decrease the money supply:

A. by 10%.
b. by $10 million.
c. by $100 million.
d. by $1 million.

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