Assuming each policy is performed with the same magnitude, which of the following would be the most restrictive monetary policy action on the part of the Federal Reserve?

a. Sell government securities, raise reserve requirements, and lower the discount rate
b. Buy government securities, raise reserve requirements, and raise the discount rate
c. Sell government securities, lower reserve requirements, and raise the discount rate
d. Sell government securities, raise reserve requirements, and raise the discount rate


D

Economics

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a. zero b. negative c. between zero and one d. infinite e. there is no specific cross elasticity for perfect substitutes

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