When the Central Bank Sells $5,000,000 Worth of Government Bonds

question 94

Multiple Choice

When the central bank sells $5,000,000 worth of government bonds to the public,the money supply

• A) decreases by more than $5,000,000.
• B) decreases by $5,000,000.
• C) decreases by less than $5,000,000.
• D) does not change.
• E) increases by $5,000,000.

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