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Question
A purchase of U.S. government securities by the Fed causes
A) an expansion of the money supply equal to the amount of the securities purchased.
B) a contraction of the money supply equal to the amount of the securities purchased.
C) an expansion of the money supply of more than the amount of the securities purchased.
D) a contraction of the money supply of more than the amount of the securities purchased.
Answer
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Related questions
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