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    Principles of Macroeconomics
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    Exam 9: The Nature and Creation of Money
  5. Question
    When the Fed Sells Government Bonds It ____ Reserves and ______
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When the Fed Sells Government Bonds It ____ Reserves and ______

Question 44

Question 44

Multiple Choice

When the Fed sells government bonds it ____ reserves and ______ the money supply.


A) increases; increases
B) decreases; increases
C) decreases; decreases
D) increases; decreases

Correct Answer:

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