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How can the Federal Reserve actually increase the money supply? A. by delaying transfer of money among banks B. by raising the discount rate C. by printing more money D. by
purchasing more government bonds in the open market
The Federal Reserve can change the money supply with 1) open market operations, 2)making changes in the reserve ratio, and 3) making changes in the discount rate. [ Of the three policies the open market is the most common. Read more: ]
Expert answered|jeifunk|Points 8674|
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Asked 2/12/2013 8:11:24 AM
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Selling government bonds through open market operations allows the Federal Reserve to A. decrease money in the treasury. B. decrease the money supply in the private sector. C. receive discounts on future sales. D. receive a high rate of interest on the bonds.
Weegy: Selling government bonds through open market operations allows the Federal Reserve to A. decrease money in the treasury. (More)
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