Which of the following monetary policies will increase money supply?
a. An increase in the discount rate
b. An increase in the reserve requirement
c. Open market purchases by the Fed
d. The Fed selling government bonds
e. An increase in the federal funds rate
Question 2
If incomes are rising, in the market for an inferior good,
a. its price will rise and the quantity exchanged will rise.
b. its price will rise and the quantity exchanged will fall.
c. its price will fall and the quantity exchanged will rise.
d. its price will fall and the quantity exchanged will fall.
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