In 19X1 the household sector purchased $50 billion in U.S. Government securities and sold $30 billion worth of U.S. Government securities; the accounting system of the Flow of Funds Accounts would show that the household sector's holdings of the U.S. Government securities had changed by $80 billion.

Question

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The change in the household sector's holdings of U.S. Government securities would be shown as an increase of $20 billion ($50 billion purchased minus $30 billion sold).

In 19X1 the Household Sector Purchased $50 Billion in U