The Economics of Money, Banking, and Financial Markets 10th Edition by Frederic Mishkin

تمرين 25

Unless otherwise noted, the following assumptions are made in all questions: The required reserve ratio on checkable deposits is 10%, banks do not hold any excess reserves, and the public's holdings of currency do not change.
If the Fed sells $1 million of bonds and banks reduce their borrowings from the Fed by $1 million, predict what will happen to the money supply.