When the Fed purchases government bonds it _____ reserves and ____ the money supply.
A) decreases; increases
B) increases; decreases
C) decreases; decreases
D) increases; increases

Name: When the Fed purchases government bonds it _____ reserves and ____ the money supply. A) decreases; increases B) increases; decreases C) decreases; decreases D) increases; increases
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Question

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When the Fed purchases government bonds, it increases bank reserves and the money supply by injecting money into the banking system.

When the Fed Purchases Government Bonds It _____ Reserves and ____

When the Fed Purchases Government Bonds It _ Reserves and