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insens350 [35]
3 years ago
10

The required reserve ratio is 0.2 and the Federal Reserve sells $1 million in securities. If there are no leakages and banks do

not hold excess reserves, then which of the following is the change in the money supply? An increase of $1 million Answer A: An increase of $1 million A An increase of $1.2 million Answer B: An increase of $1.2 million B An increase of $5 million Answer C: An increase of $5 million C A decrease of $1.2 million Answer D: A decrease of $1.2 million D A decrease of $5 million
Business
2 answers:
Alex_Xolod [135]3 years ago
8 0

Answer:

The answer is a decrease of $5 million.

Explanation:

lutik1710 [3]3 years ago
6 0
I don’t know the answer but I need points thank you and good luck
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