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17 July, 08:14

The Federal Reserve purchases and sells government securities, adjusts the reserve

requirements, and adjusts the discount rate to produce certain economic outcomes.

What is one outcome the Federal Reserve might want to produce when purchasing

government securities? (CS 24).

a) Reducing the money supply

b) Fostering economic expansion

c) Fostering economic contraction

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Answers (1)
  1. 17 July, 09:14
    0
    The answer is A. Reducing the money supply
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