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In Addition to Lowering the Discount Rate to Increase the Money

Question 113

Multiple Choice

In addition to lowering the discount rate to increase the money supply, the Fed could also


A) purchase bonds on the open market and raise reserve requirements.
B) sell bonds on the open market and raise reserve requirements.
C) purchase bonds on the open market and lower reserve requirements.
D) sell bonds on the open market and lower reserve requirements.

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