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Which of the following situations would most likely cause the Fed to increase the money supply?

Select one:
a. when the discount rate is high
b. when the economy is in a contraction
c. when the prime rate is low
d. when the economy is in an expansion

1 Answer

4 votes

Answer: b. When the economy is in contraction

Explanation: Took the test |

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Which of the following situations would most likely cause the Fed to increase the-example-1
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