When the Fed Reports a Large Monthly Decrease in the Money

question 96

Multiple Choice

When the Fed reports a large monthly decrease in the money supply, you can be reasonably sure that

• A)the decrease is due to prior open market sales.
• B)the decrease is due to the Fed's enormous influence on borrowing and lending.
• C)the decrease is due to a cumulative process linking the Fed's actions to the money supply.
• D)All of the above are correct.

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