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QUESTION 7 1.When the Federal Reserve wants to stimulate the economy, it is likely to a. prohibit borrowing from commercial banks. b. increase the reserve

QUESTION 7

1.When the Federal Reserve wants to stimulate the economy, it is likely to

a.

prohibit borrowing from commercial banks.

b.

increase the reserve requirement.

c.

buy government bonds from banks and other businesses.

d.

increase the margin requirements.

e.

increase the discount rate.

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