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The monetary base will decrease when: the Fed makes loans at the discount window. banks...

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The monetary base will decrease when: the Fed makes loans at the discount window. banks withdraw currency from the Fed. the Fed sells securities on the open market. the Fed buys securities on the open market. Question 4 Which of the following would most likely decrease the Federal Funds rate? increase in the discount rate. sale of securities by the Fed. decrease in reserve requirements. none of the above Question 5 Sustained open market buying by the Fed will cause the Fed Funds rate to rise. planned inventory investment to fall. depository institutions to lend more freely. foreign investors to buy more T-Bills

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