Explain whether, and why/how each of the following events increases or decreases the money supply.

a. The fed buys bonds in open-market operations.
b. The fed reduces the reserve requirement.
c. The fed increases the interest rate it pays on reserves.

Question

16-07-2024
Business

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Explain whether, and why/how each of the following events increases or decreases the money supply.

a. The fed buys bonds in open-market operations.
b. The fed reduces the reserve requirement.
c. The fed increases the interest rate it pays on reserves.

Sagot :

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