An Open Market Purchase of Bonds by the Fed

question 72

Multiple Choice

An open market purchase of bonds by the Fed

• A) will shift the money supply curve to the left.
• B) will drain reserves from the banking system and shift the money supply curve to the right.
• C) will inject reserves into the banking system and shift the money supply curve to the left.
• D) will shift the money supply curve to the right.
• E) will change the slope of the money supply curve.

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