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When the Fed -------------------- Securities in an Open Market Operation

Question 9

Multiple Choice

When the Fed -------------------- securities in an open market operation, banks' reserves-------------------- , and therefore lending --------------------_.


A) sells; increase; increases
B) buys; decrease; decreases
C) buys; do not change; does not change
D) sells; decrease; increases
E) buys; increase; increases

Correct Answer:

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