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Business, 07.08.2021 01:00 jaidenkenna2001

Suppose the required reserve ratio on checkable deposits is 8% and banks do not hold any excess reserves. If the Fed sells $10 million of bonds to Jane, who pays for the bonds with a check on her account at Bank A, what happens to reserves and the monetary base? Use T-accounts to explain.

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Suppose the required reserve ratio on checkable deposits is 8% and banks do not hold any excess rese...

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