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If the Federal Reserve buys $40,000 in Treasury bonds from a bank at 6% interest, what is the immediate effect on the money supply? A. It is decreased by $40,000 B. It is increased by $40,000 C. It is
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If the Federal Reserve buys $40,000 in Treasury bonds from a bank at 6%

interest, what is the immediate effect on the money supply?
A. It is decreased by $40,000
B. It is increased by $40,000
C. It is decreased by $2400
D.it is increased by $2400

User JeJo
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2 Answers

1 vote
The answer would be B it is increased by 40,000
User Sniurkst
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8 votes

Answer:

The answer would be it would increase by 40,000

User Denys Pyshniuk
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3.5k points
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