If your economics professor buys a U.S.government bond from you, the effect will be to ____ banking reserves and ____ the money supply.

Name: If your economics professor buys a U.S.government bond from you, the effect will be to ____ banking reserves and ____ the money supply.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

When a government bond is sold by an individual to another individual (like a professor), it does not affect banking reserves or the money supply, as it is a private transaction and does not involve the banking system directly.

If Your Economics Professor Buys a U