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vellojo vellojo
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7 years ago
When the Fed buys one million dollars in government securities from a commercial bank,
A) the commercial bank's total assets increase by one million dollars.
B) there is a change in the composition of the commercial bank's assets: reserves increase and government securities decrease.
C) the Fed's total assets decrease by one million dollars.
D) All of the above answers are correct.
Textbook 
Foundations of Macroeconomics

Foundations of Macroeconomics


Edition: 8th
Authors:
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Studying economics @ Edinburgh U
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yaderayadera
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7 years ago
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vellojo Author
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#2
7 years ago
Checks out after I submitted my assignment Smiling Face with Open Mouth
Studying economics @ Edinburgh U
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