Cutting taxes is not a way that the Fed can generate an increase in the money supply. As cutting taxes will always give them loss which results in lower in the revenue generation.
What is money supply?
The money supply is the complete sum of money in circulating, comprising cash, coins, and bank account holdings.
The money supply is typically characterised as a collection of safe assets that people and companies can use to make payments or invest in the short term.
Thus, option A is correct.
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