Suppose that the central bank buys $6 billion on the open market and the banks wish to hold reserves of 8 percent. What is the largest amount the money supply could ultimately increase?
| 1. |
less than $24b |
| 2. |
between $24b and $48b |
| 3. |
between $48b and $72b |
| 4. |
more than $72b |