Suppose the required reserve ratio is 20 percent. The balance sheet for Bank AAA is given below (figures are in billions).

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Q103: If the Fed increases reserves in the
Q104: The reserve ratio was nearly constant for
Q105: Velocity, V, measures
A)the percent of income held
Q106: Why did the reserve ratio increase sharply
Q107: In the long run, an increase in
Q109: The volume of transactions
A)increases only with the
Q110: The relationship between money and nominal GDP
Q111: Which of the following would increase the
Q112: When the Fed buys bonds in an
Q113: Velocity will decline if
A)the public becomes more
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