If the Fed Purchases $10,000 in Government Securities It Will

question 37

Multiple Choice

If the Fed purchases $10,000 in government securities it will have the effect of

• A)increasing the money supply.
• B)having no effect on the money supply.
• C)changing the money supply,but the direction is not clear.
• D)decreasing the money supply.
• E)unable to tell with the information provided.

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