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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.

Respuesta :

zaddy09
The Answer is A, Decreased by $40,000

Answer:

It is decreased by $40,000

Explanation:

A p e x :)

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