Refer to the table below. The amount of currency held by the public ________, and the amount of reserves held by banks ________. It must be the case that, in 1932, the Federal Reserve ________. Currency held by public(in billions)Reserve-deposit ratioBank reserves (in billions)Money supply (in billions)December 1931$4.590.095$3.11$37.3December 1932$4.820.109$3.18$34.0
A. decreased; increased; performed open-market operations
B. increased; also increased; injected reserves into the economy
C. increased; also increased; increased the discount rate
D. decreased; also decreased; kept the rate of inflation low
Answer: B
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