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An Open Market Purchase of Bonds by the Fed

Question 122

Multiple Choice

An open market purchase of bonds by the Fed


A) will shift the money supply curve to the left.
B) will drain reserves from the banking system and shift the money supply curve to the right.
C) will inject reserves into the banking system and shift the money supply curve to the left.
D) will shift the money supply curve to the right.
E) will change the slope of the money supply curve.

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