Business, 29.03.2021 17:50 alizeleach0123

Suppose the Fed would like to reduce the interest rate in the broader markets and decides to buy 10 billion dollars worth of bonds from the public. It estimates that the excess reserve ratio in the economy is 0.15 and the cash ratio is 0.1. Currently the required reserve ratio is 0.1. What is the change in the amount of dollars held in cash holdings by the public

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