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Business, 28.03.2020 06:10, asialovepink2321
Now, suppose that, rather than immediately lending out all excess reserves, banks begin holding some excess reserves due to uncertain economic conditions. Specifically, banks increase the percentage of deposits held as reserves from 10% to 20%. This increase in the reserve ratio causes the money multiplier to to . Under these conditions, the Fed would need to . $ worth of U. S. government bonds in order to increase the money supply by $100.
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Now, suppose that, rather than immediately lending out all excess reserves, banks begin holding some...
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