caarloshdz98
caarloshdz98 caarloshdz98
  • 15-02-2017
  • Mathematics
contestada

If the Federal Reserve sells $30,000 in Treasury bonds to a bank at 4% interest, what is the immediate effect on the money supply?

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Javerdabeast
Javerdabeast Javerdabeast
  • 15-02-2017
Now, as for the other part, the question is vague here. It does not specify whether "money supply" refers to the money in the government (therefore it would increase) or if it refers to the public (in which case it decreases). it is decreased by $30,000.
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kylemwhite16
kylemwhite16 kylemwhite16
  • 25-09-2019

Answer:

Decreases by 30,000

Step-by-step explanation:

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