asked 128k views
5 votes
The Federal Reserve sells 50000 in treasury bonds to a bank at 8% interest what is the immediate effect on the money supply?

A. it is decreased by 50000
B. it is increased by 50000
C. it is decreased by 55000
D. it is increased by 55000

asked
User Pompopo
by
7.7k points

1 Answer

4 votes
the right answer is C ......................
answered
User Ratata Tata
by
8.2k points
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