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5. Explain how each of the following situations changes the quantity of money (money supply) in the economy, based on its computed change in money

5. Explain how each of the following situations changes the quantity of money (money supply) in the economy, based on its computed change in money supply.

a. The Federal Reserve System buys bonds.

b. The Federal Reserve System auctions credit.

c. The Federal Reserve System raises the discount rate.

d. The Federal Reserve System raises the reserve requirement.

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