The Federal Reserve purchases $1 million in U.S. Treasury bonds from a bond dealer, and the dealer's

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The Federal Reserve purchases $1 million in U.S. Treasury bonds from a bond dealer, and the dealer's bank credits the dealer's account. The reserve ratio is 15 percent. Assuming that no currency leakage occurs, how much will the bank lend to its customers following the Fed's purchase?
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Economics Today

ISBN: 978-0132554619

16th edition

Authors: Roger LeRoy Miller

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