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Business, 20.03.2020 00:04 whityelaine7997

Gamma Bank is a commercial bank and it initially holds the required amount of reserves at the Fed. Imagine that the Fed conducts an open-market operation and buys $30,000 of bonds from Gamma Bank. Assume that the reserve requirement is 25%. What is the maximum possible amount that the national money supply could increase as a result of the open-market operation?

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Gamma Bank is a commercial bank and it initially holds the required amount of reserves at the Fed. I...
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