A decrease in the discount rate by the Federal Reserve causes the ...

[armygirl]

A decrease in the discount rate by the Federal Reserve causes the money stock to expand.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

An open-market purchase by the Federal Reserve withdraws excess reserves from the banking system and causes the money supply to contract.
 a. True
  b. False
  Indicate whether the statement is true or false

[brittanywood]

Answer to Question 1

True

Answer to Question 2

False

[armygirl]

Excellent

[komodo7]

Thanks for the timely response, appreciate it