Author Question: Which of the following would cause the money supply to increase? a. An open market purchase by the ... (Read 39 times)

beccaep · **on:** Jun 30, 2018

Which of the following would cause the money supply to increase?
a. An open market purchase by the Fed. b. A reduction in the discount rate.
c. A reduction in required ratios. d. All of these.

Question 2

The Fed's countercyclical policy during expansion and prosperity includes:
a. raising the required reserve ratio, raising the discount rate, and selling government bonds on the open market.
b. raising the required reserve ratio, raising the discount rate, and buying government bonds on the open market.
c. raising the required reserve ratio, cutting the discount rate, and selling government bonds on the open market.
d. raising the required reserve ratio, cutting the discount rate, and buying government bonds on the open market.
e. lowering the required reserve ratio, cutting discount rates, and buying government bonds on the open market.