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The body responsible for carrying out monetary policy in the United States is th

ID: 1215750 • Letter: T

Question

The body responsible for carrying out monetary policy in the United States is the U.S. Treasury. Federal Advisory Council. U.S. Congress. Federal Reserve Board The Fed controls GDP directly through government spending. indirectly through the foreign exchange market. indirectly through the money supply. indirectly through tax collections. When the Federal Reserve decreases the minimum reserve ratio, this will decrease aggregate demand. increase the money supply. decrease excess reserves. increase the discount rate.

Explanation / Answer

17. (d) Federal Reserve Board

18. (c) indirectly through the money supply

19. (b) increase the money supply. When federal reserve decreases the minimum reserve ratio then banks are left will more money then their lending increases which increases the supply of money.

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