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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

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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