7.) If the Fed sells $4000 in T-bills with a reserve requirement to 5% the money supply could potentially (increase, decrease _____ by $ ________. 8.) If the Fed reduces the reserve requirement to 5% from 20% and banks currently hold $100 in required reserves and no excess reserves the money supply potentially )increase, decrease) _____ by $______.
This question was answered on: May 23, 2022
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