Answer to Question #90770 in Macroeconomics for Diana

Question #90770
Suppose the ECB makes an open market purchase of 15 bln euro in bonds. Assume the money multiplier is equal to 3. What is the change in the money supply?
1
Expert's answer
2019-06-13T09:14:18-0400

Change in money supply = change in reserve * multiplier = 3*15=45B Euros


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