If the fed raises the reserve requirement to 5 and at the, Ask an Expert

Economics

The banking system currently has $200b of reserves, none of which are excess. People hold only deposits and no currency, and the reserve requirement is 4%. If the Fed raises the reserve requirement to 5% and at the same time buys $50b dollars of bonds, then by how much does the money supply change?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M940932

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