When the Fed buys bonds in open-market operations, it the money supply. If the Fed wants to decrease the money supply, it can the reserve requirement. When the Fed decreases the interest rate it pays on reserves, the money supply will When the FOMC increases its target for the federal funds rate, the money supply will When Citibank repays a loan it had previously taken from the Fed, it the money supply.

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter11: The Monetary System
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4. Problems and Applications Q2
When the Fed buys bonds in open-market operations, it
the money supply.
If the Fed wants to decrease the money supply, it can
the reserve requirement.
When the Fed decreases the interest rate it pays on reserves, the money supply will
When the FOMC increases its target for the federal funds rate, the money supply will
When Citibank repays a loan it had previously taken from the Fed, it
the money supply.
Transcribed Image Text:4. Problems and Applications Q2 When the Fed buys bonds in open-market operations, it the money supply. If the Fed wants to decrease the money supply, it can the reserve requirement. When the Fed decreases the interest rate it pays on reserves, the money supply will When the FOMC increases its target for the federal funds rate, the money supply will When Citibank repays a loan it had previously taken from the Fed, it the money supply.
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