kacffgi kacffgi

21-04-2017
Mathematics

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If the federal reserve sells 70,000 in treasury bonds to a bank at 9% interest, what is the immediate effect on the money supply?

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yofavvgirlraven yofavvgirlraven

21-04-2017

D , - if the Fed sells bonds, it decreases the money supply by removing cash from the economy in exchange for bonds.

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pbass707 pbass707

03-12-2020

Answer:

It is decreased by $70,000.

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