Question: I need help with this question Assume that there is a 25 percent reserve ratio and that the Federal Reserve buys $4 billion worth of

 I need help with this question Assume that there is a

I need help with this question

25 percent reserve ratio and that the Federal Reserve buys $4 billion

Assume that there is a 25 percent reserve ratio and that the Federal Reserve buys $4 billion worth of government securities. If the securities are purchased from the non-bank public, this action has the potential to increase money supply by a maximum of: $14 billion, but by $16 billion if the securities are purchased directly from commercial banks $14 billion, and by $20 billion if the securities are purchased directly from commercial banks $16 billion, but only by $14 billion if the securities are purchased directly from commercial banks O $16 billion, and also by $16 billion if the securities are purchased directly from commercial banks

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