Explain if the central bank prints an additional

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Reference no: EM1357148

In Macroland, currency held by the public is $2000, bank reserves are $300, and the required reserve ratio is 10%. If the Central Bank prints an additional $200 and uses this new currency to buy government bonds from the public (open market purchase), the money supply in Macroland will increase from __5000__ to _____ assuming that the public does not wish to change the amount of currency it holds.

Reference no: EM1357148

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