What is the maximum impact the fed actions

Reference no: EM132184039

Question - Suppose the Federal Reserve increases deposits at financial institutions by $10 billion through its open market operations. If the reserve requirement for all deposits is 10%.

a. What is the maximum impact the Fed's actions can have on loanable funds?

b. What would be the maximum impact of the Fed's action if the reserve requirements were to be 100%?

Reference no: EM132184039

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