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    Principles of Economics Study Set 6
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    Exam 26: Monetary Policy and the Fed
  5. Question
    If the Fed Sells Government Bonds, Bank Reserves Will _______
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If the Fed Sells Government Bonds, Bank Reserves Will _______

Question 26

Question 26

Multiple Choice

If the Fed sells government bonds, bank reserves will _______, leading to a(n) _______ in the money supply.


A) decrease; decrease
B) increase; decrease
C) increase; increase
D) decrease; increase

Correct Answer:

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