Which of the following fed actions increases the

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Principles of Economics
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Chapter 34 / Exercise 6
Principles of Economics
Mankiw
Expert Verified
90.Which of the following Fed actions increasesthe money supply? A. Decreasing the amount of loans made to commercial banks.B. Buying government securities in the open market.C. Selling government securities in the open market.D. Increasing reserve requirements.
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Principles of Economics
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Chapter 34 / Exercise 6
Principles of Economics
Mankiw
Expert Verified
91.Suppose the money multiplier in the U.S. is 2.5. If the Fed wants to reduce the money supply by 1000 it should:
92.Suppose the money multiplier in the U.S. is 2.5. If the Fed wants to reduce the money supply by 1,500 it should:
93.Suppose the money multiplier in the U.S. is 4. If the Fed wants to expand the money supply by 600 it should:
94.To decrease the nation's money supply, the Fed can: A. decrease the reserve requirement.B. decrease the discount rate.C. increase the discount rate.D. buy bonds.
95.Federal Reserve sales of government securities:
96.Which of the following Fed policies would help the economy out of a recession?
97.If the Fed simultaneously raises the discount rate and the reserve requirement, the money supply will:
98.If the Fed simultaneously lowers the reserve requirement and sells government bonds, the money supply will: A. contract.B. remain unchanged.C. expand.D. move in a way that cannot be determined from the information given.
99.If the Fed simultaneously reduces the discount rate and the required reserve ratio, the money supply will:

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