Which of the following describes how the Federal Reserve could use the tools of monetary policy to increase the money supply?
A) Reduce the reserve requirement, reduce the discount rate, or buy bonds.
B) Raise the interest rate banks receive from the Fed, increase the discount rate, or sell bonds.
C) Increase the reserve requirement, increase the discount rate, or sell bonds.
D) Increase the reserve requirement, reduce the discount rate, or reduce the interest rate that banks receive from the Fed.
Correct Answer:
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