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AP® Macroeconomics

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Federal Reserve Tools: Increasing Money Supply

APMACR-CESVYM

In order to increase the money supply, the Federal Reserve will take which of the following actions?

I. Buy bonds
II. Sell bonds
III. Increase interest rates

A

I only.

B

II only.

C

III only.

D

I & II only.

E

II & III only.