Business

Brown Sugar

22 March, 09:27

1. Describe the effect each action below will have on the money supply. Explain your reasoning.

A. The Feds raises the discount rate from 5% to 10%.

B. The required reserve ratio is lowered from 20% to 10%.

C. The Fed sells $5 billion worth of T-bonds on the open market.

D. The Fed buys $5 billion worth of T-bonds on the open market.

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