The Money Supply Increases When the Fed

question 37

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.

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