Which of the following Fed actions will decrease the money supply?
A) reverse repos
B) repos
C) open-market purchases of bonds
D) raising taxes

Name: Which of the following Fed actions will decrease the money supply? A) reverse repos B) repos C) open-market purchases of bonds D) raising taxes
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Question

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Reverse repos involve the sale of securities by the Fed with an agreement to buy them back later. This action takes money out of circulation, thereby decreasing the money supply.

Which of the Following Fed Actions Will Decrease the Money