Question

If the Federal Reserve sells $80,000 in Treasury bonds to a bank at 7%

interest, what is the immediate effect on the money supply?
OA. It is increased by $80,000.
OB. It is decreased by $85,600.
C. It is decreased by $80,000.
D. It is increased by $85,600.

Answer 1

Answer: D

Step by step explanation: the bank with 7% interest can get 7% incrementing (+5600$), because capitalism.

Answer 2

Answer: OB

Explanation:

It is decreased by $80,000.

did the test