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Suppose that the country is experiencing a recession. How can the Fed use its three tools of monetary policy in order to stimulate the economy?
Suppose that the country is experiencing a recession. How can the Fed use its three tools of monetary policy in order to stimulate the economy?
a.
Buy government securities, reduce the reserve requirement ratio, and lower the discount rate
b.
Buy government securities, reduce the reserve requirement ratio, and increase the discount rate
c.
Sell government securities, reduce the reserve requirement ratio, and lower the discount rate
d.
Sell government securities, increase the reserve requirement ratio, and lower the discount rate
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