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An open-market purchase of government securities by the Fed will: Select one: a. increase bank reserves, and the money supply will increase. b. decrease bank

An open-market purchase of government securities by the Fed will:

Select one:

a. increase bank reserves, and the money supply will increase.

b. decrease bank reserves, and the money supply will increase.

c. increase bank reserves, and the money supply will decrease.

d. decrease bank reserves, and the money supply will decrease.

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