Suppose the federal reserve wants to increase the money supply by $200. again, you can assume that banks do not hold excess reserves and that households do not hold currency. if the reserve requirement is 10%, the fed will use open-market operations to worth of u. s. government bonds?

The fed needs to purchase bonds worth $20 from the banks to increase money supply by $200.

Explanation:

The Federal Reserve wants to increase the money supply by $200.

The reserve requirement is 10%.

The fed can increase the money supply by purchasing bonds from commercial banks.  

The money supply will increase by money multiplier times worth of bonds.  

Increase in money supply =

$200 =

Worth of bonds =

Worth of bonds = $20  

So the fed needs to purchase bonds worth $20 from the banks to increase money supply by $200.

answer///a coalition;