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Q: Suppose the money multiplier in the U.S. is 3. Suppose further that if the Federal Reserve changes the discount rate by 1 percentage point, banks change their reserves by 300. To increase the money
supply by 2700 the Federal Reserve should
A: reduce the discount rate by 3 percentage points
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User: Suppose the money multiplier in the U.S. is 3. Suppose further that if the Federal Reserve changes the discount rate by 1 percentage point, banks change their reserves by 300. To increase the money supply by 2700 the Federal Reserve should

Weegy: reduce the discount rate by 3 percentage points
margarita|Points 321|

User: If the Federal Reserve increases the required reserves, financial institutions will likely lend out

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Asked 11/12/2012 6:43:59 PM
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