If the Fed purchases $100,000 in government bonds from a bank, then the
A) liabilities of the bank rise by $100,000.
B) reserves of the bank fall by $100,000.
C) assets of the bank rise by $100,000.
D) reserves of the bank rise by $100,000.
Ans: D) reserves of the bank rise by $100,000.
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In the United States, who determines monetary policy? What is the major tool used to determine monetary policy?
What will be an ideal response?
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A) IS; right B) IS; left C) LM; left D) LM; right
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A. acquired B. natural C. subsidized D. unwarranted