Suppose the Federal Reserve increases the amount of reserves by $100 million and the total money supply increases by $500 million.
a. What is the money multiplier?
b. Using the money multiplier from part a, how much will the money supply change if the Federal Reserve increases reserves by $50 million?
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Home » Business » Suppose the Federal Reserve increases the amount of reserves by $100 million and the total money supply increases by $500 million. a. What is the money multiplier? b.