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    Principles of Money Banking
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    Exam 20: Understanding Movements in Bank Reserves
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    If the Federal Government Collects $10 Billion in Taxes and Then
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If the Federal Government Collects $10 Billion in Taxes and Then

Question 9

Question 9

Multiple Choice

If the federal government collects $10 billion in taxes and then spends it on the public, the money supply


A) rises by $20 billion.
B) rises by $10 billion.
C) falls by $10 billion.
D) is unaffected.

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