Question: Any help with the working out for this would be appreciated! Suppose the public holds 20% of their money as currency and the rest as

Any help with the working out for this would be appreciated!

Any help with the working out for this would be appreciated! Suppose

Suppose the public holds 20% of their money as currency and the rest as deposits in their banks. Moreover, the central bank requires banks to maintain a reserve-deposit ratio of 10%. What will be the change in the total money supply if the central bank sells $5 million of government bonds to the public who uses their money to pay for these bonds

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