Describe the effect of each action below will have on the money supply. Explain your reasoning
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History, 07.04.2020 15:52 abbisauers
Describe the effect of each action below will have on the money supply. Explain your reasoning
A. The fed raises the discount rate from 5% to 10%
B. The required reserve ratio is lowered from 20% to 10%
C. The fed sells $5 billion worth of T-bonds on the open market
D. The fed buys $5 billion worth of T-bonds on the open market
E. Banks decide to keep more of their assets as reserves in order to avoid risking a shortage of the required reserve
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