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If the Fed Buys $5 Million in Government Bonds, How

Question 196

Multiple Choice

If the Fed buys $5 million in government bonds, how much will the money supply change?


A) It will increase by $5 million.
B) It will increase by more than $5 million.
C) It will decrease by $5 million.
D) It will decrease by more than $5 million.

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