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a. When the central bank sells a government bond to a bank, what happens to reserves in the banking system and the monetary base? b.

a. When the central bank sells a government bond to a bank, what happens to reserves in the banking system and the monetary base? b. When a bank sells a government bond to the central bank, what happens to reserves in the banking system and the monetary base? c. When an individual sells a $100 bond to the central bank, she may either deposit the check she receives or cash it for currency. In both cases what happens to the monetary base?

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