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If the Fed Sells $10,000 in Government Securities It Will

Question 4

Multiple Choice

If the Fed sells $10,000 in government securities it will have the effect of


A) having no effect on the money supply.
B) changing the money supply,but the direction is not clear.
C) decreasing the money supply.
D) increasing the money supply.
E) unable to tell with the information provided.

Correct Answer:

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