ere are several ways that governments can increase or decrease the money supply.

Question

ere are several ways that governments can increase or decrease the money supply. Match the aescriptions below with the corresponding policy tool. It's possible that a description does not apply to any of the terms Open Market Operations Reserve Requirement Discount Rate Quantitative Easing A central bank purchasing a large quantity of nger-term Treasury bonds An increase in the interest longeterm Treasury b easury bonds. An increase in the purchasing existing bonds. percentage of deposits that rate that a central bank banks must keep on hand A central bank charges commercial banks for loans. A government printing more currency An increase in government spending Incorrect. Printing money is problematic, in part because it is un r how said money should be distributed. Double check your other answers as well

Explanation / Answer

Printing money and government expenditure are not the direct tools to increase or decrease money supply.

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