Suppose that the money supply is $3.2 trillion. Decision makers at the Federal Reserve decide that they

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Suppose that the money supply is $3.2 trillion. Decision makers at the Federal Reserve decide that they wish to use open market operation to increase the money supply by $500 billion. If the required reserve ratio is 0.10, what does the Fed need to do to carry out the planned increase? What if the required reserve ratio is 0.15?

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Macroeconomics Principles and Applications

ISBN: 978-1111822354

6th edition

Authors: Robert E. Hall, Marc Lieberman

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