Lecture_12 - Lecture 12 Econ 2 Tracking the Economy...

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Lecture 12 Econ 2
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Tracking the Economy
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Tracking the Economy
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Reserves and Deposits Suppose the reserve requirement is 20%. If the Fed buys $500 of Treasury bills, then deposits can A) increase by $500 B) decrease by $500 C) increase by $2500 D) increase by $5000
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