Explain what happens to the money supply when the Fed sells bonds on the open market. What happens to the assets and liabilities of the Fed?
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Q465: The potential money multiplier gives us
A) the
Q466: If the reserve ratio decreases from 20
Q467: The formula is the Q468: What is a fractional reserve banking system? Q469: What are reserves? Discuss the various types Q471: When banks reduce the reserve ratio, the Q472: Suppose the Fed purchases $1 million in Q473: Which of the following would reduce the Q474: Which of the following would reduce the Q475: When people decide to increase the amount![]()
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