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Suppose the Fed wants to increase the money supply by $400 billion to drive down interest rates and stimulate the economy. Assuming that the money multiplier is operating to full effect, to accomplish the desired increase, the Fed could

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esarango28

Answer:

The correct answer is "The Fed could buy $40 billions of US securities from banks"

Explanation:

The Fed could buy $40 billions of US securities from banks

$400 Billion * 10% rate = $40 Billions