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How will the fed balance sheet change

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Question: The Fed purchases $20,000 in bonds from the Valpo Bank. How will the Fed's balance sheet change? How will the Valpo Bank's balance sheet change? Show the changes on the Fed's balance sheet and the Valpo Bank's balance sheet. What is the impact on the money supply likely to be (e.g., increase or decrease)?

Reference no: EM133551293

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