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When the Central Bank Buys $5,000,000 Worth of Government Bonds

Question 104

Multiple Choice

When the central bank buys $5,000,000 worth of government bonds to the public,the money supply


A) increases by more than $5,000,000.
B) increases by $5,000,000.
C) increases by less than $5,000,000.
D) does not change.
E) decreases by $5,000,000.

Correct Answer:

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