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    Macroeconomics Study Set 39
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    Exam 4: The Monetary System: What It Is and How It Works
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    If the Federal Reserve Wishes to Increase the Money Supply
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If the Federal Reserve Wishes to Increase the Money Supply

Question 99

Question 99

Multiple Choice

If the Federal Reserve wishes to increase the money supply, it should:


A) decrease the discount rate.
B) increase interest paid on reserves.
C) sell government bonds.
D) decrease the monetary base.

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