If the federal reserve sells 70,000 in treasury bonds to a bank at 9% interest, what is the immediate effect on the money supply?

asked Dec 5, 2018 165k views

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1 vote

D , - if the Fed sells bonds, it decreases the money supply by removing cash from the economy in exchange for bonds.

Komang answered Dec 8, 2018

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3 votes

Answer:

It is decreased by $70,000.

Explanation:

took the test

Tilpner answered Dec 10, 2018

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