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If the federal reserve sells 70,000 in treasury bonds to a bank at 9% interest, what is the immediate effect on the money supply?

Respuesta :

yofavvgirlraven
D ,  -  if the Fed sells bonds, it decreases the money supply by removing cash from the economy in exchange for bonds. 
pbass707

Answer:

It is decreased by $70,000.

Step-by-step explanation:

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