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1) Would the money supply increase or decrease given the following actions by the Fed? a) The Fed decreased the discount rate. b) The

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1) Would the money supply increase or decrease given the following actions by the Fed? a) The Fed decreased the discount rate. b) The Fed made an open market purchase of T-bills. c) The Fed increased the interest rate paid on reserves. d) The Fed increased the reserve ratio. e) The Fed made an open market sale of T-bills. f) The Fed decreased the reserve ratio. g) The Fed decreased the interest rate paid on reserves. h) The Fed increased the discount rate.

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