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If the Money Multiplier Is 2 and the Fed Wants

Question 171

Multiple Choice

If the money multiplier is 2 and the Fed wants to increase the money supply by $900,000, it could


A) buy $300,000 worth of bonds.
B) buy $450,000 worth of bonds.
C) sell $300,000 worth of bonds.
D) sell $450,000 worth of bonds.

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