Author Question: When the Federal Reserve buys bonds on the open market, it decreases the money supply. Indicate ... (Read 89 times)

lunatika

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When the Federal Reserve buys bonds on the open market, it decreases the money supply.
 
  Indicate whether the statement is true or false

Question 2

The actual money multiplier multiplied by the change in total reserves is the
 
  A) actual change in the money supply. B) potential money multiplier.
  C) federal funds rate. D) discount rate.



Chelseyj.hasty

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Answer to Question 1

FALSE

Answer to Question 2

A



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