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What will happen to the money supply

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Reference no: EM132531566

Question 1: If the required reserves ratio is 50 % and the Federal Reserve sells $100 million of bonds, what will happen to money supply?

Question 2: If the reserve requirements ratio is 10% and the Federal Reserve buys $100 million bonds, what will happen to the money supply?

Question 3: If the Fed decreases the reserve requirements ratio from 50% to 20% what will happen to the money multiplier?

Reference no: EM132531566

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