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Business, 02.12.2019 18:50 madelynreynolds4757

The federal reserve bank decides to increase the money supply in the economy. when the money-creation process is complete, the fed wants there to be $20 billion worth of new funds in the money supply. if the required reserve ratio is 5%, what is the simple money multiplier, and by how much should the fed initially increase the money supply? assume that all currency is deposited in banks and that banks hold no excess reserves.

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