If the Federal Reserve sells $80,000 in Treasury bonds to a bank at 4% interest what is immediate effect on money supply? A. It is decreased by $80,000 B. It is decreased by $3200 C. It is increased by

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asked Nov 27, 2018 33.7k views

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If the Federal Reserve sells $80,000 in Treasury bonds to a bank at 4% interest what is immediate effect on money supply?

A. It is decreased by $80,000
B. It is decreased by $3200
C. It is increased by $3200
D. it is increased by $80,000

Business
high-school

Luis Medina asked

by Luis Medina

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The answer is A, It is decreased by $80,000

Peter Hansen answered Nov 29, 2018

by Peter Hansen

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The answer you're looking for is A. Hope I helped!

Martin Lottering answered Dec 4, 2018

by Martin Lottering

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