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1.describe the effect of each action below will have on the money supply. explain your reasoning a. the fed raises the discount rate from 5% to 10% b. the required reserve ratio is lowered from 20% to 10% c. the fed sells $5 billion worth of t-bonds on the open market d. the fed buys $5 billion worth of t-bonds on the open market e. banks decide to keep more of their assets as reserves in order to avoid risking a shortage of the required reserve
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1.describe the effect of each action below will have on the money supply. explain your reasoning a....
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