. Explain how each of the following situations changes the quantity of money (money supply) in the economy, based on its computed change in money supply. a. The Federal Reserve System buys bonds.
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b. The Federal Reserve System auctions credit.
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c. The Federal Reserve System raises the discount rate.
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d. The Federal Reserve System raises the reserve requirement.

Experienced problem solvers always consider both the value and units of their answer to a problem. why?

Crowding out is a phenomenon focused upon most by the macroeconomists of whereby a government deficit interest rates, which in turn private investment spending. this group also believed that fiscal policy is the only thing that can lower natural unemployment. is just as effective in countering recessions as monetary policy. can be used most of the time, but monetary policy becomes a better option when velocity is fluctuating. should be used only if the central bank follows a monetary policy rule. faces problematic lags in propagating changes throughout the economy.

Bruno's pizza restaurant makes full payment of $8,300 on an account payable to stella's cheese co. stella's would record this transaction with a