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16. When the Treasury purchases goods the: a. increase the national debt b. decrease the national debt e increase the reserves of the banking system

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16. When the Treasury purchases goods the: a. increase the national debt b. decrease the national debt e increase the reserves of the banking system d. decrease the reserves of the banking system e, both "a" and "e" are correct answers f. both "a" and "d" are correct answers g. both "b" and "e" are correct answers h. both "b" and "d" are correct answers i. none of the above answers are correct. In the space provided below, use the appropriate balance sheets to show why you selected your answer to the previous question. Be careful to label each balance sheet, the accounts which are changing, and the direction of change in the accounts. Show the effect on the national debt and the reserves of the banking system of the Treasury purchasing paper clips from Staples Corporation

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