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The Federal Reserve Can Increase the Money Supply in All

Question 7

Multiple Choice

The Federal Reserve can increase the money supply in all but which of the following ways?


A) The Fed can buy government securities.
B) The Fed can lower interest rates by altering the federal funds rate.
C) The Fed may change its discount rate.
D) The Fed can increase its reserve requirement for member banks.
E) All of these choices are true.

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