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Advanced Placement (AP), 28.01.2021 20:50 meowmeowcow
Assume banks in the country hold no excess reserves and the public's holding of currency is constant. The required reserve ratio is 25%. The central bank of the country buys $100 billion in bonds from the nonbank public.
(i) By how much will the monetary base of the country change?
(ii)Calculate the change in the amount of loans in the banking system in the country.
(iii) Calculate the change in the money supply in the country.
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Assume banks in the country hold no excess reserves and the public's holding of currency is constant...
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