NAIMMCQ Economics When the Federal Reserve purchases a government bond from a bank, reserves in the banking system ________ and the monetary base ________, everything else held constant.

When the Federal Reserve purchases a government bond from a bank, reserves in the banking system and the monetary base , everything else held constant.

Economics

When the Federal Reserve purchases a government bond from a bank, reserves in the banking system and the monetary base , everything else held constant.

A) increase; increases
B) increase; decreases
C) decrease; increases
D) decrease; decreases

Answer: A

NAIMMCQ

When the Federal Reserve purchases a government bond from a bank, reserves in the banking system ________ and the monetary base ________, everything else held constant.

When the Federal Reserve purchases a government bond from a bank, reserves in the banking system ________ and the monetary base ________, everything else held constant.

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When the Federal Reserve purchases a government bond from a bank, reserves in the banking system and the monetary base , everything else held constant.

When the Federal Reserve purchases a government bond from a bank, reserves in the banking system and the monetary base , everything else held constant.