When the Federal Reserve buys bonds on the open market, it decreases the money supply. Indicate ...

Author Question: When the Federal Reserve buys bonds on the open market, it decreases the money supply. Indicate ... (Read 101 times)

lunatika

Hero Member
Posts: 548

on: Jun 30, 2018

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

Sr. Member
Posts: 319

Reply #1 on: Jun 30, 2018

Answer to Question 1

FALSE

Answer to Question 2

A

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