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When the fed makes an open market purchase

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Suppose Richard Branson withdraws $5 million from his checking account at Bank of America. If the required reserve ratio is 25%, what is the maximum change in deposits in the banking system?

Isabel purchases a $1,000 face value one-year Treasury bill for $934.58, and the next day investors decide they will only buy one-year Treasury bills if they receive an interest rate of 9%. If Isabel decides to sell her Treasury bill to another investor the day after she purchased it, she will  recieve ??

When the Fed makes an open market purchase, long-term real interest rates will ________, which will ________ GDP.

Reference no: EM131748493

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