A decrease in ________ leads to an equal ________ in the monetary base in the long run.

Name: A decrease in ________ leads to an equal ________ in the monetary base in the long run.
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Question

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When securities decrease, banks purchase fewer securities from the Fed, leading to a decrease in the monetary base. This is because when banks purchase securities from the Fed, they pay for them by decreasing their balances in their reserve accounts. This causes a decrease in the monetary base.

A Decrease in ________ Leads to an Equal ________ in the Monetary

A Decrease in Leads to an Equal in the Monetary