When the Central Bank Sells $1,000,000 Worth of Government Bonds

Multiple Choice

When the central bank sells $1,000,000 worth of government bonds to the public, the money supply:

A) decreases by more than $1,000,000.
B) decreases by $1,000,000.
C) decreases by less than $1,000,000.
D) increases by $1,000,000.