# Assume that the reserve requirement is 5 percent. All other things being equal, will the money supply expand more if the Fed buys $2,000 worth of bonds or if someone deposits in a bank$2,000 that she had been hiding in her cookie jar? If one creates more, how much more does it create? Support your thinking.

### Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781337091985

### Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9781337091985

#### Solutions

Chapter
Section
Chapter 11, Problem 8PA
Textbook Problem

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