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Explain How Each of the Following Changes the Money Supply

question 6

Essay

Explain how each of the following changes the money supply.
a.the Fed buys bonds
b.the Fed auctions credit
c.the Fed raises the discount rate
d.the Fed raises the reserve requirement


Definitions:

Five-Figure Accuracy

Describes numerical values precise to five digits.

Repeating Decimal

A fraction represented in decimal form where a specific set of digits continues to repeat endlessly.

Percent Equivalent

A value expressing a number as a fraction of 100, used to describe the relative size of a part to a whole.

Repeating Decimal

A decimal fraction in which a figure or group of figures repeats indefinitely.

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