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

Multiple Choice

When the central bank buys $1,000,000 worth of government bonds from the public,the money supply

A) increases by more than $1,000,000.
B) increases by $1,000,000.
C) increases by less than $1,000,000.
D) does not change.
E) decreases by $1,000,000.