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Answer to Question #272037 in Economics for unknown

Question #272037

The central bank in Malaysia has bought $100 in bonds from a bank. The reserve requirements is 25% percent. What is the maximum possible change in the money supply? 


1
Expert's answer
2021-11-28T17:54:43-0500

If the reserve requirements is 25% percent, then the maximum possible change in the money supply is:

"100\/0.25 = 400."


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