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Suppose that the Federal Reserve purchases $10,000 worth of securities from the non-bank public. Then what happens next? A} R decrease by $10,000 and MB
Suppose that the Federal Reserve purchases $10,000 worth of securities from the non-bank public. Then what happens next?
A} | R decrease by $10,000 and MB rises by $10,000 |
B) | C and R both decrease by $10,000, and MB falls by $10,000 |
C) C increases by $10,000 and the MB increases by $10,000 |
D) C increases by $10,000 and the MB falls by $10,000 |
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