What can the Fed do to increase the quantity of money and keep the monetary base constant?

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What can the Fed do to increase the quantity of money and keep the monetary base constant? Explain why the Fed would or would not.

  • Change the currency drain ratio.
  • Change the required reserve ratio.
  • Change the discount rate.
  • Conduct an open market operation.
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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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