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42 If the central bank buys government securities from the market participants, then it is likely to: Select one: a. Decrease the money supply when
42 If the central bank buys government securities from the market participants, then it is likely to: Select one:
a. Decrease the money supply when the market participants sell to the central bank
b. It is likely that demand for loanable funds will fall, all else being equal
c. Increase the money supply when the central bank pays the holders (the FIs) for the securities
d. It is likely interest rates may increase, all else being equal e. It is likely dishoarding will increase
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