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If the Federal Reserve sells $80,000 in Treasury bonds to a bank at 4% interest what is immediate effect on money supply? A. It is decreased by $80,000 B. It is decreased by $32…

If the Federal Reserve sells $80,000 in Treasury bonds to a bank at 4% interest what is immediate effect on money supply? A. It is decreased by $80,000 B. It is decreased by $32…
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If the Federal Reserve sells $80,000 in Treasury bonds to a bank at 4% interest what is immediate effect on money supply?

A. It is decreased by $80,000
B. It is decreased by $3200
C. It is increased by $3200
D. it is increased by $80,000

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User Luis Medina
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2 Answers

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The answer is A, It is decreased by $80,000

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User Peter Hansen
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8.2k points
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The answer you're looking for is A. Hope I helped!
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User Martin Lottering
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