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Business, 07.05.2020 06:04 Kenzie5755

The banking system currently has $200 billion of reserves, none of which are excess. People hold only deposits and no currency, and the reserve requirement is 4 percent. If the Fed raises the reserve requirement to 10 percent and at the same time buys $50 billion worth of bonds. How much does the money supply change due to the change in the reserve requirement

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The banking system currently has $200 billion of reserves, none of which are excess. People hold onl...

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