Which of the following lists represents monetary policy actions that are consistent with one another?
A) buy government bonds,raise reserve requirements,raise the discount rate
B) sell government bonds,raise reserve requirements,lower the discount rate
C) sell government bonds,raise reserve requirements,raise the discount rate
D) buy government bonds,lower reserve requirements,raise the discount rate

Question

Quizplus · Accepted Answer

When the central bank sells government bonds, it decreases the money supply, which is consistent with raising reserve requirements and raising the discount rate to further decrease the money supply. Therefore, choices A, B, and D are inconsistent policy actions.

Which of the Following Lists Represents Monetary Policy Actions That