If the central bank buys bonds, the monetary base will fall and the money supply will rise.

Name: If the central bank buys bonds, the monetary base will fall and the money supply will rise.
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When the central bank buys bonds, it injects liquidity into the banking system, increasing the monetary base. This action typically leads to an increase in the money supply as banks have more reserves to lend out.

If the Central Bank Buys Bonds, the Monetary Base Will