Question: Explain two ways by which the Federal Reserve System can increase the monetary base. Why is the effect of Federal Reserve actions on bank reserves

Explain two ways by which the Federal Reserve System can increase the monetary base. Why is the effect of Federal Reserve actions on bank reserves less exact than the effect on the monetary base?

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The Federal Reserve System can increase the monetary base through various means and two common methods are open market operations and discount rate ch... View full answer

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