A purchase of U.S. government securities by the Fed causes

A) an expansion of the money supply equal to the amount of the securities purchased.
B) a contraction of the money supply equal to the amount of the securities purchased.
C) an expansion of the money supply of more than the amount of the securities purchased.
D) a contraction of the money supply of more than the amount of the securities purchased.


C) an expansion of the money supply of more than the amount of the securities purchased.

Economics

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