If the reserve requirement is 20 c05 and e0001 what happens
The Fed sells $100,000 in Treasury Bonds to Chase Bank in the secondary market.
a) What happens to the monetary base as a result?
b) If the reserve requirement is 20%, c=0.5 and e=0.001, what happens to the money supply as a result?
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If the reserve requirement is 20%, c=0.5 and e=0.001, what happens to the money supply as a result?
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