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11 April, 19:30

How should each instrument be changed if the fed wished to decrease the money supply?

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  1. 11 April, 19:56
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    The way each instrument be changed if the fed wished to decrease the money supply is the Fed should conduct:

    - Open market sales

    - Raise discount rates

    - Raise interest paid on reserves.

    This will attract more saving from the people.
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