Which of the following monetary policies will have an indeterminate effect on the money supply of an economy?
A) A combination of an increase in the discount rate and an open market sale of government securities
B) A combination of a decrease in the discount rate and an increase in reserve requirements
C) A combination of an increase in both the discount rate and reserve requirements
D) A combination of purchases of government securities and a decrease in reserve requirements
E) A combination of sales of government securities and an increase in reserve requirements
Correct Answer:
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