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If a Central Bank Wanted to Increase the Money Supply

Question 117

Multiple Choice

If a central bank wanted to increase the money supply, what would it most likely do?


A) It would make open-market purchases and lower the bank rate.
B) It would make open-market sales and lower the bank rate.
C) It would make open-market purchases and raise the bank rate.
D) It would make open-market sales and raise the bank rate.

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