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Question
If the reserve requirement for banks is fixed at 10% and the Fed wishes to decrease the money supply by $500 billion, what type of open market operation should the Fed undertake?
a. Sell $55.56 billion in government securities
b. Purchase $55.56 billion in government securities
c. Sell $00 billion in government securities
d. Purchase $00 billion in government securities
Answer
This answer is hidden. It contains 1 characters.
Related questions
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