What is the ultimate effect on the money supply
Assume that the required reserve ratio is 15%. If the Federal Reserve buys a $10,000 government bond from an individual in the economy, what is the initial effect on the money supply? What is the ultimate effect on the money supply?
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Assume that the required reserve ratio is 15%. If the Federal Reserve buys a $10,000 government bond from an individual in the economy, what is the initial effect on the money supply?
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