The Fed Increases the Reserve Requirement and Makes Open Market

question 277

Multiple Choice

The Fed increases the reserve requirement and makes open market purchases.Which of these by itself will increase the money supply?

• A)Neither the increase in the reserve requirement nor the open market purchases.
• B)Both the increase in the reserve requirement and the open market purchases.
• C)Only the increase in the reserve requirement.
• D)Only the open market purchases.

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