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Business, 30.03.2020 22:04 oliup567

Assume that the reserve requirement is 10%. All other things being equal, will the money supply expand MORE if the Fed buys $1,000 worth of bonds OR if someone deposits in a bank $1,000 that she had been hiding under her mattress? If one situation creates more money, how much more does it create? Explain your answer briefly (no more than 2-3 short sentences).

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Assume that the reserve requirement is 10%. All other things being equal, will the money supply expa...
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