Use its monetary policy tools to decrease the money supply

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Reference no: EM131076385

If the Federal Reserve wanted to use its monetary policy tools to decrease the money supply, it could:

A. buy bonds, reduce the discount rate, or reduce reserve requirements.

B. sell bonds, reduce the discount rate, or reduce reserve requirements.

C. sell bonds, increase the discount rate, or increase reserve requirements.

D. buy bonds, increase the discount rate, or increase reserve requirements.

Reference no: EM131076385

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