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The Fed's Purchase of Securities from Depository Institutions Results In

Question 121

Multiple Choice

The Fed's purchase of securities from depository institutions results in:


A) a decrease in reserves and a potential reduction in the money supply.
B) a decrease in reserves and a potential expansion in the money supply.
C) an increase in reserves and a potential reduction in the money supply.
D) an increase in reserves and a potential expansion in the money supply.

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