Which of the following would lead to a decrease in the money supply?
a. Banks decide to use excess reserves to purchase corporate bonds.
b. The Fed decreases the discount rate.
c. The Fed decreases the required reserve ratio.
d. The Fed sells government bonds.
e. The Fed purchases government bonds.
D
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What will be an ideal response?
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A) has increased over the years B) increased as a result of the baby boom following World War II, but has subsequently declined C) has fallen with the decline in U.S. birth rates D) determines the size of contributions to the system
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a. capital inflow. b. capital outflow. c. current account transaction. d. service trade transaction.
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Indicate whether the statement is true or false