Business, 16.12.2020 16:40, macycj8

Bank reserves are $200, the public holds $1000 in currency, and the reserve-deposit ratio is 20%. What is the Value of Bank Deposits? What is the Money Supply? Suppose that the Fed sells $50 worth of bonds in an "open market sale." Assuming that the public does not wish to change the amount of currency it holds, what is the new money supply after this open market purchase? Please enter your answers as numerical responses (ie. 100 or $100 not "One Hundred Dollars")

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Bank reserves are $200, the public holds $1000 in currency, and the reserve-deposit ratio is 20%. Wh...