Multiple Choice
The money supply increases when the Fed
A) buys bonds.The increase will be larger,the smaller is the reserve ratio.
B) buys bonds.The increase will be larger,the larger is the reserve ratio.
C) sells bonds.The increase will be larger,the smaller is the reserve ratio.
D) sells bonds.The increase will be larger,the larger is the reserve ratio.
Correct Answer:
Verified
Correct Answer:
Verified
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