Question #93535
In order to reduce the money supply, the SARB could
[1] reduce the interest rate.
[2] increase the tax rate.
[3] buy the government bonds.
[4] sell the securities.
[1] reduce the interest rate.
[2] increase the tax rate.
[3] buy the government bonds.
[4] sell the securities.
Expert's answer
In order to reduce the money supply, the SARB could sell the securities.
So, the correct answer is [4].
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