2. The reserve requirement is 20% and the FED buys 200 billion dollars of government
securitie...
Social Studies, 21.04.2020 16:51 rm3582317
2. The reserve requirement is 20% and the FED buys 200 billion dollars of government
securities. What is the maximum expansion possible in the money supply?
3. Explain how the change in the money supply in question 2 works its way through the
economy to affect employment, inventories, GDP, and interest rates. Be sure to explain the
causality chain, not just what happens to each variable.
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