Question: Hi, Would you please help me with the below question? If the banking system is loaned up and any open-market purchase by the Fed directly

Hi,

Would you please help me with the below question?

If the banking system is loaned up and any open-market purchase by the Fed directly increases reserves in the banks. If the required reserve ratio is 0.2, by how much could the money supply expand if the Fed purchased $2 billion worth of bonds?

Regards

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