Mathematics, 22.07.2019 18:00, josephvcarter

If the federal reserve buys $100,000 in treasury bonds from a bank at 3% interest, why is the immediate effect on the money supply? a) it is increased by $100,000 b) it’s decreased by $3000 c) increased by $3000 d) decreased by $100,000

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If the federal reserve buys $100,000 in treasury bonds from a bank at 3% interest, why is the immedi...