Question: K Describe the basic shape that a figure of the multiple expansion in the money supply due to $100,000 in new reserves when the reserve
K Describe the basic shape that a figure of the multiple expansion in the money supply due to $100,000 in new reserves when the reserve ratio is 10 percent would take if the Fed had instead generated a multiple contraction in the money supply by removing $100,000 in reserves from the banking system via an open market sale. Click the icon to view the relevant figure. If the Fed had instead generated a multiple contraction in the money supply by removing $100,000 in reserves from the banking system via an open market sale, then OA every number in the figure would have a negative value of the same absolute amount currently displayed and the basic shape of the figure would be a vertical mirror image of the existing figure, with all amounts appearing below the horizontal axis. OB. every number in the figure would have a negative value of the same absolute amount currently displayed and the basic shape of the figure would be a horizontal mirror image of the existing figure, with all amounts appearing to the left of
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