Business, 07.11.2019 22:31, BeautyxQueen

Suppose the federal reserve (fed) decides the current money supply of $2.1 trillion is too low, and that an increase of $ 400 billion is necessary. what tool can the fed use to accomplish this increase? assume the current reserve ratio is 0.1 . sell government securities. buy government securities. increase the interest paid on bank reserves. increase the reserve ratio. calculate the change in reserves necessary to achieve the $ 400 billion increase. $ billion

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Suppose the federal reserve (fed) decides the current money supply of $2.1 trillion is too low, and...