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Sublight2097 Sublight2097
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8 years ago
When the Fed sells bonds on a mass scale
A) bonds go to the Fed, and dollars go into the banking system, so the money supply tends to rise.
B) bonds go to the Fed, and dollars exit the banking system, so the money supply tends to fall.
C) banks have fewer bonds and more dollars, so the money supply tends to rise.
D) banks have more bonds and fewer dollars, so the money supply tends to fall.
Textbook 
The Economic Way of Thinking

The Economic Way of Thinking


Edition: 13th
Authors:
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VincenzoDVincenzoD
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Sublight2097 Author
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#2
8 years ago
My mind was going in all different directions trying to figure this one out. Thanks so much.
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