Suppose the Fed buys $1 million of U.S. government bonds from a commercial bank. If commercial banks
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Question:
Suppose the Fed buys $1 million of U.S. government bonds from a commercial bank. If commercial banks are making some loans, the purchase will cause the monetary base to _____ $1 million, everything else held constant.
Select one:
A.increase by
B.increase by more than
C.decrease by less than
D.decrease by more than
E.decrease by
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