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To Reduce the Money Supply in the Economy, the Fed

Question 153

Multiple Choice

To reduce the money supply in the economy, the Fed would


A) increase the discount rate and/or raise the reserve ratio.
B) carry out open market purchases and/or raise the reserve ratio.
C) carry out open market sales and/or lower the discount rate.
D) carry out open market purchases and/or lower the discount rate.

Correct Answer:

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