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Blababa [14]
3 years ago
8

Suppose that the reserve requirement is 10% and that the Federal Reserve purchases $5 billion in bonds from a brokerage firm.Ini

tially, as a result of this bond purchase, the money supply will___________
Business
2 answers:
Lyrx [107]3 years ago
6 0

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Anna11 [10]3 years ago
5 0

Answer:

Increase

Explanation: Money supply is a term used to describe the amount of money available for use within an economy or the amount of money released into an economy by Government agencies and privates Organisations or Individuals.

Money supply can be increased through several means which includes through investment,through the purchase of stocks,bonds or other marketable securities.

Initially, as a result of this bond purchase, the money supply will increase as more money is being released for the purchase of stocks.

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katen-ka-za [31]

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Find the given attachment

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The Google My Business messaging tool allows customers to reach business owners through what type of communication?
serg [7]

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