If there is a surplus of money in the money market,the Fed can eliminate it by

Name: If there is a surplus of money in the money market,the Fed can eliminate it by
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Question

Quizplus · Accepted Answer

If there is a surplus of money in the money market, it means that there is excess supply of money. The Fed can eliminate this surplus by decreasing the money supply, which would reduce the amount of money in the market and bring it back to equilibrium. Therefore, the correct choice is decreasing money supply (choice D).

If There Is a Surplus of Money in the Money