Question: You put a $100 deposit in your checking account. When would the money supply go up the most? Group of answer choices When the Fed
You put a $100 deposit in your checking account. When would the money supply go up the most? Group of answer choices When the Fed interest paid on bank reserves is below the interest the bank gets on loans to the public. When the Fed interest paid on bank reserves is above the interest the bank gets on loans to the public. Trick question - the Fed doesn't pay interest on bank reserves. When the Fed interest paid on bank reserves is the same as the interest the bank gets on loans to the public
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