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2 years ago

If the federal reserve conducts an open-market purchase, bank reserves _ and the money supply _

1 answer:

6 0

If the federal reserve conducts an open market purchase, bank reserve DECREASE and the money supply INCREASE. The federal reserve has the responsibility to control the amount of money available in the economy. When the federal reserve make a purchase, their reserve will decrease, the money supply in the economy will increase, interest rates will fall and investment spending will increase.

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3 years ago

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If the federal reserve conducts an open-market purchase, bank reserves _____ and the money supply _____

If the federal reserve conducts an open-market purchase, bank reserves _ and the money supply _