With a required reserve ratio of 20 explain in detail how


With a required reserve ratio of 20%, explain in detail how an Open Market Purchase of $100,000 leads to an expansion in the money supply. I would like you to describe (at least) four different "rounds" in this process. By how much does the money supply increase? What can lead to the actual increase being much lower than the above number?

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Business Economics: With a required reserve ratio of 20 explain in detail how
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