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If the Fed makes an open market sale of $1 million of securities to a bank, how do the bank's reserves and excess reserves change?
If the Fed makes an open market sale of $1 million of securities to a bank, how do the bank's reserves and excess reserves change? How do bank deposits and the quantity of money change? Question content area bottom Part 1 If the Fed makes an open market sale of $1 million of securities to a bank, the bank's reserves _______. Excess reserves _______. A. decrease; decrease B. decrease; increase C. increase; decrease D. increase; increase
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