Multiple Choice
Sometimes during wars,government expenditures are larger than normal.To reduce the effects this spending creates on interest rates,
A) the Federal Reserve could increase the money supply by buying bonds.
B) the Federal Reserve could increase the money supply by selling bonds.
C) the Federal Reserve could decrease the money supply by buying bonds.
D) the Federal Reserve could decrease the money supply by selling bonds.
Correct Answer:
Verified
Correct Answer:
Verified
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