If the head of the Central Bank of Brazil wanted to decrease the supply of money in
Question:
If the head of the Central Bank of Brazil wanted to decrease the supply of money in Brazil in 2015, which of the following would do it? Explain your answer.
Increase the required reserve ratio
Decrease the required reserve ratio
Increase the discount rate
Decrease the discount rate
Buy government securities in the open market
Sell government securities in the open market
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Increase the reserve ratio This would immediately tighten reserves reduce excess reserves if any ...View the full answer
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Related Book For
Principles of Macroeconomics
ISBN: 978-0134078809
12th edition
Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster
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