Suppose that the federal reserve injects 3 billion dollars


A. Suppose that the Federal Reserve injects 3 billion dollars by purchasing bonds from a bond dealer. show the new balance sheet of the commercial bank.

B. Find the new money supply in the economy in two ways;

I. Using the balance sheet of the commercial bank.

II. Using the money multiplier

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Business Economics: Suppose that the federal reserve injects 3 billion dollars
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