To increase the money supply, the Federal Reserve could - 3625

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Request Description

 To increase the money supply, the Federal Reserve could 

A. raise the required reserve ratio.

B. conduct an open market purchase of Treasury securities.

C. decrease income taxes.

D. raise the discount rate.

E. lower transfer payments.

 
Solution Description

If the central bank can act as a lender of last resort during a banking panic, banks can 

A. borrow more