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If the Federal Reserve sells $80,000 in Treasury bonds to a bank at 7% interest, what is the immediate effect on the money supply? OA. It is increased by $80,000. OB. It is decreased by $85,600. C. It
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If the Federal Reserve sells $80,000 in Treasury bonds to a bank at 7%

interest, what is the immediate effect on the money supply?
OA. It is increased by $80,000.
OB. It is decreased by $85,600.
C. It is decreased by $80,000.
D. It is increased by $85,600.

User YesItsMe
by
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2 Answers

4 votes

Answer: D


Step by step explanation: the bank with 7% interest can get 7% incrementing (+5600$), because capitalism.

User Mohamed Heiba
by
3.9k points
3 votes

Answer: OB

Explanation:

It is decreased by $80,000.

did the test

User Clint B
by
2.9k points
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