Which measure would increase the money supply?
A) increasing the reserve requirement
B) increasing the discount rate
C) selling government bonds
D) buying government bonds

Name: Which measure would increase the money supply? A) increasing the reserve requirement B) increasing the discount rate C) selling government bonds D) buying government bonds
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Question

Quizplus · Accepted Answer

Buying government bonds adds money to the economy by increasing bank reserves, which leads to increased lending and ultimately increased money supply.

Which Measure Would Increase the Money Supply