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The Federal Reserve and the Money Supply
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The Federal Reserve and the Money Supply
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18. The Monetary System / The Federal Reserve and the Money Supply / Problem 1
Problem 1
Why are open market operations considered a more flexible tool for controlling the money supply compared to changing the reserve requirement?
A
They directly affect consumer spending habits.
B
They can be quickly executed and easily reversed.
C
They require less coordination with international banks.
D
They are less visible to the public.
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