Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 29 - Part X - The Monetary System - Quick Check Multiple Choice - Page 630: 5

Answer

c) an increase in the interest rate paid on reserves

Work Step by Step

An open-market purchase of government bonds would increase the money supply. Decreasing the discount rate on Fed lending would increase the money supply. A reduction in the reserve requirements would increase the money supply.
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