Unformatted text preview: percent, then what is the quantity of money in the economy? _________________________________________________________________________ 2. Fill in the following blanks with “increases” or “decreases”: a. When the Fed buys bonds, the money supply ___________________________________. b. When the Fed decreases reserve requirements, the money supply ___________________. c. When the Fed increases the discount rate, the money supply _______________________. d. When the Fed sells bonds, the money supply ____________________________________. e. When the Fed decreases the discount rate, the money supply _______________________. f. When the Fed increases reserve requirements, the money supply ____________________....
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This note was uploaded on 09/15/2011 for the course 06E 002 taught by Professor Kim during the Spring '08 term at University of Iowa.
- Spring '08