A decrease in the supply of money in an economy could be caused by (choose all t
ID: 1112557 • Letter: A
Question
A decrease in the supply of money in an economy could be caused by (choose all that apply): a. an increase in the discount rate. b. a decrease in the discount rate. c. an increase in the required reserve ratio. d. a decrease in the required reserve ratio. e. a sale of government securities by the Fed. f. a purchase of government securities by the Fed.
AN increase in the supply of money in an economy could be caused by (choose all that apply):
a. an increase in the discount rate.
b. a decrease in the discount rate.
c. an increase in the required reserve ratio.
d. a decrease in the required reserve ratio.
e. a sale of government securities by the Fed.
f. a purchase of government securities by the Fed.
Explanation / Answer
1.
A decrease in the supply of money in an economy could be caused by
a. an increase in the discount rate.
c. an increase in the required reserve ratio.
e. a sale of government securities by the Fed.
the above is the answer
2.
AN increase in the supply of money in an economy could be caused by
b. a decrease in the discount rate.
d. a decrease in the required reserve ratio.
f. a purchase of government securities by the Fed.
the abobve is the answer
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