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The potential output is $800 billion. The required reserves ratio is 5%. If the current real GDP is $740 billion, then the central bank would attempt...

The potential output is $800 billion. The required reserves ratio is 5%. If the current real GDP is $740 billion, thenthe central bank would attempt to buy about $30 billion in securities. the central bank would attempt to sell about $30 billion in securities. the central bank would attempt to buy about $20 billion in securities. the central bank would attempt to sell about $30 billion in securities.

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