Multiple Choice
Which of the following would cause the U.S. money supply to expand?
A) A commercial bank using excess reserves to extend a loan to a customer
B) A commercial bank purchasing U.S. securities from the Fed as an investment
C) An increase in reserve requirements by the Fed
D) An increase in the discount rate by the Fed
E) An increase in the tax rate by the government
Correct Answer:

Verified
Correct Answer:
Verified
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