Business, 10.10.2019 21:00, diemiten

If the federal reserve sells $40,000 in treasury bonds to a bank at 5% interest, what is the immediate effect on the money supply?
a. it is decreased by $40,000.
b. it is increased by $42,000.
c. it is decreased by $42,000.
d. it is increased by $40,000.

Answers: 2

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If the federal reserve sells $40,000 in treasury bonds to a bank at 5% interest, what is the immedia...

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If the federal reserve sells $40,000 in treasury bonds to a bank at 5% interest, what is the immediate effect on the money supply? a. it is decreased by $40,000. b. it is increased by $42,000. c. it is decreased by $42,000. d. it is increased by $40,000.

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If the federal reserve sells $40,000 in treasury bonds to a bank at 5% interest, what is the immediate effect on the money supply?
a. it is decreased by $40,000.
b. it is increased by $42,000.
c. it is decreased by $42,000.
d. it is increased by $40,000.