When the Fed buys a U.S. government security:
A) the volume of loans issued by the banking system increases and investment will tend to increase.
B) the volume of loans issued by the banking system increases and investment will tend to decrease.
C) the volume of loans issued by the banking system decreases and investment will tend to increase.
D) the volume of loans issued by the banking system decreases and investment will tend to decrease.
Correct Answer:
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