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    Economics Principles and Policy Study Set 2
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    Exam 29: Monetary Policy: Conventional and Unconventional
  5. Question
    If the Fed Purchases $100,000 of Government Bonds, and the Reserve
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If the Fed Purchases $100,000 of Government Bonds, and the Reserve

Question 200

Question 200

True/False

If the Fed purchases $100,000 of government bonds, and the reserve requirement is 20 percent, the maximum increase in the money supply is $ 500,000.

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