Which of the Following Monetary Policies Will Have an Indeterminate

question 90

Multiple Choice

Which of the following monetary policies will have an indeterminate effect on the money supply of an economy?

• A)A combination of an increase in the discount rate and an open market sale of government securities
• B)A combination of a decrease in the discount rate and an increase in reserve requirements
• C)A combination of an increase in both the discount rate and reserve requirements
• D)A combination of purchases of government securities and a decrease in reserve requirements
• E)A combination of sales of government securities and an increase in reserve requirements

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