okaysum1627 okaysum1627

22-04-2024
Business

Answered

Suppose the Fed buys 20 million in government bonds. If the required reserve ratio, Ir, is 25%, what will happen to the money supply?
a) It will decrease by 20 million.
b) It will increase by 20 million.
c) It will increase by 80 million.
d) It will increase by 100 million.

Answer :

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