Multiple Choice
The money supply increases when the Fed
A) lowers the discount rate.The increase will be larger the smaller the reserve ratio is.
B) lowers the discount rate.The increase will be larger the larger the reserve ratio is.
C) raises the discount rate.The increase will be larger the smaller the reserve ratio is.
D) raises the discount rate.The increase will be larger the larger the reserve ratio is.
Correct Answer:
Verified
Correct Answer:
Verified
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