1. Describe the effect each action below will have on the money supply. Explain your reasoning.
A. The Feds raises the discount rate from 5% to 10%.
B. The required reserve ratio is lowered from 20% to 10%.
C. The Fed sells $5 billion worth of T-bonds on the open market.
D. The Fed buys $5 billion worth of T-bonds on the open market.
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