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The reserve requirement for Freedonia is 25% and the MPS is .20. Assume that the money...

The reserve requirement for Freedonia is 25% and the MPS is .20. Assume that the money supply is currently $300 billion. Rufus T. Firefly, the president of the Bank of Freedonia, the central bank, determines that Freedonia's GDP is $150 billion below full employment GDP. He wants to use monetary policy to end this recession. How much in government bonds does Rufus need to purchase in order to raise GDP by $150 billion?

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