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Business, 21.02.2020 03:27 kristofwr3444

Assume there is no leakage from the banking system and that all commercial banks are loaned up. The required reserve ratio is 16%. If the Fed sells $5 million worth of government securities to the public, the change In the money supply will be:. A) -$31.25 million. B) -$21 million. C) -$16 million. D) -$11.75 million.

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