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Author Question: When the Federal Reserve buys bonds on the open market, it decreases the money supply. Indicate ... (Read 86 times)

lunatika

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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

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Reply #1 on: Jun 30, 2018
Answer to Question 1

FALSE

Answer to Question 2

A


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