Assume a 1% required reserve ratio, zero excess and no currency leakage. The potential money multiplier is______. If the Federal Reserve purchases $3…

Assume a 1% required reserve ratio, zero excess and no currency leakage. The potential money multiplier is______. If the Federal Reserve purchases $3 million in U.S. government securities, calculate the change in total deposits in the banking system as a whole $___ million.

Suppose that the required reserve ratio is 20%. What is the total possible expansion of the money supply after a $ 1 million bond purchased by the Fed? $___

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