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What happens to the Fed's balance sheet when it buys government bonds as part of an Open Market Operation? Group of answer choices Assets and

What happens to the Fed's balance sheet when it buys government bonds as part of an Open Market Operation? Group of answer choices 


Assets and liabilities of the Fed increase by the same amount 


Assets decrease because the Fed has to pay for the bonds, liabilities are unaffected. 


Liabilities decrease as these bonds are taken out of circulation, assets are unaffected 


Assets of the Fed increase, liabilities are unaffected

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