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Suppose the currency drain is 10 percent and the required reserve ratio is 1%. If the Fed sells $100,000 of securities on the open market, calculate the first round changes in (a) excess reserves, (b) deposits, (c) currency in circulation.
Submitted: 1244 days and 22 hours ago.
Category: General
Value: $10
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1243 days and 20 hours ago.
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