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QUESTION:
Which of the following policy combinations would consistently work to increase the money supply?
a. Sell government bonds, decrease interest paid on reserves, decrease the discount rate
b. Sell government bonds, increase interest paid on reserves, increase the discount rate
c. Buy government bonds, increase interest paid on reserves, decrease the discount rate
d. Buy government bonds, decrease interest paid on reserves, decrease the discount rate
ANSWER:
d. Buy government bonds, decrease interest paid on reserves, decrease the discount rate
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