An increase in ________ leads to an equal ________ in the monetary base in the long run.

Name: An increase in ________ leads to an equal ________ in the monetary base in the long run.
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Question

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When the central bank buys securities, it injects money into the economy which increases the monetary base. This process is also known as open market operations. In the long run, the increase in securities leads to an equal increase in the monetary base. Therefore, option C is the correct choice.

An Increase in ________ Leads to an Equal ________ in the Monetary

An Increase in Leads to an Equal in the Monetary