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OpenStudy (anonymous):

Suppose the Federal Reserve increases deposits at financial institutions by $50 billion through its open market operations. If the reserve requirements for all deposits is 8%, what is the maximum impact the Fed's actions can have on total deposits? a. $54.3 billion increase b. An increase greater than $1 trillion c. $625 billion increase d. $575 billion increase e. Total deposits would decrease, but there is not enough information to compute the amount.

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