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Suppose the Federal Reserve increases deposits at financial institutions by $47 billion
through its open market operations. If the reserve requirement for all deposits is 16%,
what is the maximum impact the Fed's actions can have on total deposits?

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Suppose the Federal Reserve increases deposits at financial institutio.docx

  • 1. Suppose the Federal Reserve increases deposits at financial institutions by $47 billion through its open market operations. If the reserve requirement for all deposits is 16%, what is the maximum impact the Fed's actions can have on total deposits?