Multiple Choice
If people decide to hold less currency relative to deposits,the money supply
A) falls.The Fed could lessen the impact of this by buying Treasury bonds.
B) falls.The Fed could lessen the impact of this by selling Treasury bonds.
C) rises.The Fed could lessen the impact of this by buying Treasury bonds.
D) rises.The Fed could lessen the impact of this by selling Treasury bonds.
Correct Answer:
Verified
Correct Answer:
Verified
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