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If the Bank of Canada sells $ 1 1 8 million worth of Canada bonds to the public, the money supply will decrease increase not
If the Bank of Canada sells $ million worth of Canada bonds to the public, the money supply will
decrease
increase
not change
since purchasers of these securities will
deposit funds in banks,
withdraw funds from banks,
increase consumption spending,
decrease consumption spending,
which
does not change
decreases
increases
banks reserves and causes banks to typically loan
less.
more.
the same amount.
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