Find money supply if banking not hold any excess reserves


Suppose that the reserve ratio is 10% when the Fed sells $66,700 of U.S. Treasury bills to the banking system. If the banking system does NOT want to hold any excess reserves, _______ will be _______ the money supply.

A.$667,000; subtracted from
B.$667,000; added to
C.$250,000; subtracted from
D.$250,000; added to

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Microeconomics: Find money supply if banking not hold any excess reserves
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