Answer to Question #93535 in Macroeconomics for Lesego

Question

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.

Answer 1

In order to reduce the money supply, the SARB could sell the securities.

So, the correct answer is [4].