NAIMMCQ Economics If a member of the nonbank public purchases a government bond from the Federal Reserve in exchange for currency, the monetary base will ________, but reserves will ________.

If a member of the nonbank public purchases a government bond from the Federal Reserve in exchange for currency, the monetary base will , but reserves will .

Economics

If a member of the nonbank public purchases a government bond from the Federal Reserve in exchange for currency, the monetary base will , but reserves will .

A) remain unchanged; rise
B) remain unchanged; fall
C) rise; remain unchanged
D) fall; remain unchanged

Answer: D

NAIMMCQ

If a member of the nonbank public purchases a government bond from the Federal Reserve in exchange for currency, the monetary base will ________, but reserves will ________.

If a member of the nonbank public purchases a government bond from the Federal Reserve in exchange for currency, the monetary base will ________, but reserves will ________.

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If a member of the nonbank public purchases a government bond from the Federal Reserve in exchange for currency, the monetary base will , but reserves will .

If a member of the nonbank public purchases a government bond from the Federal Reserve in exchange for currency, the monetary base will , but reserves will .