If the Fed Wanted to Use All Three of Its

question 228

Multiple Choice

If the Fed wanted to use all three of its primary tools to increase the money supply, it should

• A) raise the reserve requirement, lower the discount rate, and conduct an open market sale.
• B) raise the reserve requirement, raise the discount rate, and conduct an open market sale.
• C) lower the reserve requirement, raise the discount rate, and conduct an open market purchase.
• D) lower the reserve requirement, lower the discount rate, and conduct an open market purchase.

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