1. An open market purchase of bonds by the Central Bank Select one: a. drains reserves from the banking system and decreases the money supply b. injects reserves into the banking system and increases the money supply c. injects reserves into the banking system and decreases the money supply d. injects reserves into the banking system and increases money demand e. drains reserves from the banking system and increases the money supply 2. An understanding of macroeconomics is valuable because it can help Select one: a. us to understand the forces that determine how fast the economy grows b. to minimize the amount of tax an individual owes c. in making purchase decisions d. minimize the opportunity cost of making poor decisions e. us to understand why some firms earn more economic profit than others