Suppose the Fed sells $100 million of U.S.government securities (bonds) to the public.How will this affect the money supply and the national debt?
A) The money supply will increase;the national debt will decrease.
B) The money supply will decrease;the national debt will increase.
C) The money supply will increase;the national debt will be unaffected.
D) The money supply will decrease;the national debt will be unaffected.
Correct Answer:
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