5. How will the following actions a ffect the money supply: (a) (b) (c) A reduction in...

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5. How will the following actions a ffect the money supply:

(a)

(b)

(c)

A reduction in the discount rate An increase in the reserve requirements Purchase by the Fed of $ 1 0 million of U.S. securities from a commercial bank

(d) Sale by the U .S. Treasury of $ 1 0 million of newly issued bonds to a commercial bank

(e) An increase in the discount rate

(f) Sale by the Fed of $20 million of U .S. securities to a private investor

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Economics Private And Public Choice

ISBN: 9780123110404

2nd Edition

Authors: James D Gwartney; Richard Stroup; A H Studenmund

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