Macroeconomics 6th Edition by Robert Hall,Marc Lieberman

Exercise 8

Suppose that the money supply is $3.2 trillion. Decision makers at the Federal Reserve decide that they wish to use open market operation to increase the money supply by $500 billion. If the required reserve ratio is 0.10, what does the Fed need to do to carry out the planned increase? What if the required reserve ratio is 0.15?