Suppose the money supply is currently 400 billion and the, Business Economics

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Suppose the money supply is currently 400 billion and the

Suppose the money supply is currently $400 billion and the Fed wishes to increase it by $200 billion.

a) Given a required reserve ratio of 10%, how much the Fed should increase money supply?

b) If the Fed decided to change the money supply by changing the required reserve ratio, what should the required reserve ratio be?

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Business Economics: Suppose the money supply is currently 400 billion and the

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