2. A commercial bank sells a Treasury bond to the Federal Reserve for $100,000. The money supply:...

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2. A commercial bank sells a Treasury bond to the Federal Reserve for $100,000. The money supply: LO16.3

a. Increases by $100,000.

b. Decreases by $100,000.

c. Is unaffected by the transaction.

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Macroeconomics

ISBN: 9781259915673

21st Edition

Authors: Campbell McConnell, Stanley Brue , Sean Flynn

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