Open market purchases ________ reserves and the monetary base thereby ________ the money supply.
A)raise;lowering
B)raise;raising
C)lower;lowering
D)lower;raising

Question

Quizplus · Accepted Answer

Open market purchases increase reserves and the monetary base, leading to an increase in the money supply. Therefore, the correct choice is B: raising reserves and the monetary base raises the money supply.

Open Market Purchases ________ Reserves and the Monetary Base Thereby