Explain will the money supply expand more for federal resrve

Reference no: EM13236853

Assume that the reserve requirement is 5%. All other things equal, will the money supply expand more if the Federal Reserve busy $2,000 worth of bonds or if someone deposits in a bank $2,000 that he had been hiding in his cookie jar? If one creates more, how much more does it create?

Reference no: EM13236853

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