Suppose that the t-account for first national bank

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Suppose that the t-account for first national bank is as follows: Assets liabilities Reserve $100.000 Deposits $500.000 Loan 200.000 Bonds 200,000 b. By how much would the money supply change if First National, like all other banks decides to maintain zero excess reserves by making new loans? c. Suppose the Fed purchases $50,000 of government bonds from First National Bank and First National maintains zero excess reserves. By how much would the money supply change as a result of this bond purchase and change in First National’s excess reserve policy

Reference no: EM131170650

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