The Fed purchases $100,000 of U.S.government securities from One Bank.Assuming the desired reserve ratio is 10 percent,banks loan all excess reserves,and the currency drain is 20 percent,how much does the quantity of money increase?

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The Answer of The Fed purchases $100,000 of U.S.government securities from One Bank.Assuming the desired reserve ratio is 10 percent,banks loan all excess reserves,and the currency drain is 20 percent,how much does the quantity of money increase?

The Fed Purchases $100,000 of U