Assuming a reserve requirement of 10 percent,if the Fed sells $20 billion in bonds to the public,the lending capacity of the system will eventually

Question

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When the Fed sells $20 billion in bonds, it reduces the reserves in the banking system. With a reserve requirement of 10%, the money multiplier is 10. Therefore, the lending capacity decreases by $20 billion times the money multiplier, which is $200 billion.

Assuming a Reserve Requirement of 10 Percent,if the Fed Sells