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    Principles of Economics Study Set 3
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    Exam 29: The Monetary System
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    Explain How Each of the Following Changes the Money Supply
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Explain How Each of the Following Changes the Money Supply

Question 182

Question 182

Essay

Explain how each of the following changes the money supply.
a.
the Fed buys bonds
b.
the Fed raises the discount rate
c.
the Fed raises the reserve requirement

Correct Answer:

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a.
If the Fed buys bonds,it pays for the...

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