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The Fed's Policy Beginning in 1983 Was to Keep the Growth

Question 25

Multiple Choice

The Fed's policy beginning in 1983 was to keep the growth in borrowed reserves within some specified range. As a result, the Fed ________.


A) supplied reserves through open market purchases when borrowed reserves fell.
B) refused reserves through open market purchases when borrowed reserves rose.
C) supplied reserves through open market sells when borrowed reserves rose.
D) supplied reserves through open market purchases when borrowed reserves rose.

Correct Answer:

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