How much would it have to raise the monetary base


Suppose the Federal Reserve uses data to estimate the currency-deposit ratio to be 0.90, the ratio of liquid savings assets to transaction deposits to be 8.00, and the excess reserves ratio to be 0.001.

A) If it wished to increase M2 by $10 billion, how much would it have to raise the monetary base?

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Finance Basics: How much would it have to raise the monetary base
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