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Which of the Following Indicates the Primary Mechanism by Which

Question 191

Multiple Choice

Which of the following indicates the primary mechanism by which the money supply expands?


A) The U.S. Treasury prints additional currency.
B) The Fed purchases additional bonds, which increases the reserves available to the banking system.
C) The public decides to hold more currency rather than checking deposits.
D) The U.S. government purchases additional gold.

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