4. If the Fed purchases U.S. Treasury bills from a commercial bank, what happens to bank reserves...

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4. If the Fed purchases U.S. Treasury bills from a commercial bank, what happens to bank reserves and the money supply?

Bank reserves Money supply

a. increase decrease

b. increase increase

c. decrease decrease

d. decrease increase

e. increase no change

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Related Book For  book-img-for-question

Macroeconomics In Modules

ISBN: 978-1464139055

3rd Edition

Authors: Paul Krugman ,Robin Wells

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