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In what sense does the Fed "create money"? b)Suppose that the minimum required reserve ratio for banks was 1/11. Also suppose that banks held no excess reserves and that currency in circulation was unchanged. What action in the Treasury bill market would the Fed have to take to increase bank checking account deposits by $990 million?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M939260

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