One simple econ question

 Suppose that the required reserve ratio is 10%. If the Fed decided to increase money supply for $2 billion to stimulate the economy through open market operations, how much government bonds the Fed should sell? If the Fed uses newly printed money for the action, how much government bonds should the Fed buy or sell? If the Fed uses banks’ reserve for its open market operations, how much government bonds the Fed should buy or sell.

 

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