What change in money supply results from open market sale

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Assume a model where the currency ratio is 0.2 (c = 0.2), the excess reserve ratio is 0.3 (e = 0.3), and the required reserve ratio is 0.3 (r = 0.3). What is the money multiplier? What change in the money supply results from an open market sale of $500,000?

Reference no: EM13996108

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