Question: Assignment Content 1. Explain whether, and why/how each of the following events increases or decreases the money supply. (This is NOT multiple choice) a. The

Assignment Content

1. Explain whether, and why/how each of the following events increases or decreases the money supply. (This is NOT multiple choice)

a. The Fed buys bonds in open-market operations.

b. The Fed reduces the reserve requirement.

c. The Fed increases the interest rate it pays on reserves.

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