The Fed can influence the money supply by
A)changing how much it lends to banks.
B)changing the interest rate it pays banks on the reserves they are holding.
C)using open-market operations.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The Fed can influence the money supply by changing how much it lends to banks, changing the interest rate it pays banks on the reserves they are holding, and using open-market operations. Therefore, all of the above choices are correct.

The Fed Can Influence the Money Supply by