Suppose the Federal Reserve were to buy $100 million of U.S. Treasury bills. The money supply would:

Name: Suppose the Federal Reserve were to buy $100 million of U.S. Treasury bills. The money supply would:
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When the Federal Reserve buys U.S. Treasury bills, it injects money into the banking system, increasing reserves and allowing banks to create more money through the lending process, thus increasing the money supply by more than the initial $100 million purchase.

Suppose the Federal Reserve Were to Buy $100 Million of U.S