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(2)List and briefly describe the three primary tools the Fed has to control the money supply and how all three can specifically be used to either increase or decrease the supply. In other words, how much the tools you list be used to raise the money supply? To lower the money supply? (1) Show a T-account for a bank when you make a deposit of $2000 into your checking account. Assume the reserve ratio is 20%. (b). If the lending process continues as far as it can possibly go, how many deposit dollars will be created from this initial $2000 deposit?
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