asked 47.4k views
5 votes
When a bank buys a government bond from the Federal Reserve, 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

1 Answer

7 votes

Answer:

C) decrease; increases that is my own final answer

answered
User Huma
by
8.1k points
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