If the Fed wishes to increase the money supply,it can:
A) sell a bond to bank,and take the money it receives in exchange out of circulation in the economy.
B) buy a bond from a bank,giving the bank cash in return,which it can then lend out.
C) sell a bond to a bank,and take the money it receives and lend it out to someone else.
D) buy a bond from a bank,requiring the bank to hold the money it receives as excess reserves.
Correct Answer:
Verified
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