Author Question: A decrease in the discount rate by the Federal Reserve causes the money stock to expand. a. True ... (Read 50 times)

armygirl · **on:** Jun 30, 2018

A decrease in the discount rate by the Federal Reserve causes the money stock to expand.
a. True
b. False
Indicate whether the statement is true or false

Question 2

An open-market purchase by the Federal Reserve withdraws excess reserves from the banking system and causes the money supply to contract.
a. True
b. False
Indicate whether the statement is true or false