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28 Sep 2019
Describe the effect on the money supply of the following action by the Federal Reserve bank (Fed):
(a) The Fed purchases $20 million worth of U.S. treasury bonds.
(b) The Fed increases the discount rate.
(c) The Fed decreases the discount rate.
(d)The Fed sells $40 million worth of U.S. T-bills.
(e) The Fed decreases the required reserve ratio.
Describe the effect on the money supply of the following action by the Federal Reserve bank (Fed):
(a) The Fed purchases $20 million worth of U.S. treasury bonds.
(b) The Fed increases the discount rate.
(c) The Fed decreases the discount rate.
(d)The Fed sells $40 million worth of U.S. T-bills.
(e) The Fed decreases the required reserve ratio.
Darryn D'SouzaLv10
28 Sep 2019