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Homework answers / question archive / in the context of the financial market, suppose an economy in which the public holds cash for $ 1,000 and demand deposits for $ 2,000 and that the reserve ratio is 110%

in the context of the financial market, suppose an economy in which the public holds cash for $ 1,000 and demand deposits for $ 2,000 and that the reserve ratio is 110%

Economics

in the context of the financial market, suppose an economy in which the public holds cash for $ 1,000 and demand deposits for $ 2,000 and that the reserve ratio is 110%. Starting from equilibrium, if the central bank buys bonds worth $ 100 (round to 2 decimal places) The monetary base decreases by $ 100 OR The money supply increases by S 100 OR The money supply increases by $ 250 OR The money supply decreases by $ 250 A

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