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If Your Economics Professor Buys a Government Bond from You,what

Question 36

Multiple Choice

If your economics professor buys a government bond from you,what will the effect be to banking reserves and the money supply?


A) Banking reserves will not change and the money supply will not change.
B) Banking reserves will increase and the money supply will not change.
C) Banking reserves will not change and the money supply will increase.
D) Banking reserves will increase and the money supply will increase.

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