Suppose that the central bank buys $6 billion

Reference no: EM131005818

Suppose that the central bank buys $6 billion on the open market and the banks wish to hold reserves of 8 percent. What is the largest amount the money supply could ultimately increase?

1.	less than $24b
2.	between $24b and $48b
3.	between $48b and $72b
4.	more than $72b

Reference no: EM131005818

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