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Suppose that banks decide to hold excess reserves. In order for the Federal Reserve to change the money suppl as in parts 1 and
Suppose that banks decide to hold excess reserves. In order for the Federal Reserve to change the money suppl as in parts 1 and 2, it would need to make Choose one: A. a smaller open market purchase and a smaller open market sale. OB. a larger open market purchase and a larger open market sale. OC. a larger open market purchase but a smaller open market sale. OD. a smaller open market purchase but a larger open market sale.
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