Did the Fed's asset purchases also cause the monetary base to rise? 

A. No, because the asset purchases would have decreased both reserves and currency in circulation. 

B. No, because the asset purchases would have impacted only the Fed's assets, not its liabilities. 

C. Yes, because the asset purchases would have increased reserves or currency in circulation. 

D. Yes, because the asset purchases would have increased the level of discount loans

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The detailed answer for the above question is provided below The correct answer is C Yes because the ... View the full answer