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When a bank buys a government bond from the Federal Reserve, reserves in the banking system _____ and the monetary base _____, everything else held constant. A) increase; increases B) increase; decreases
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When a bank buys a government bond from the Federal Reserve, reserves in the banking system _____ and the monetary base _____, everything else held constant.

A) increase; increases
B) increase; decreases
C) decrease; increases
D) decrease; decreases

User HforHisham
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7 votes

Answer:

C) decrease; increases that is my own final answer

User Huma
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