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The Federal Reserve Bank purchases $140,000 in securities and as a result, total amount of loans...

The Federal Reserve Bank purchases $140,000 in securities and as a result, total amount of loans in the economy rises by $1,166,666. Then according to the simple deposit multiplier model, the required reserve ratio is

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Answer #1

Since Toney mohphies (nm) = 1 rederic ratio (8) Now; Money supply = 199x Money reverte 1166666 = MAX 140000 1992 1166666 1400

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