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Question
If a $1 million open market purchase by the Fed generates a new deposit at a bank that immediately causes the bankʹs reserves held at the Fed to increase by $1 million, then the T-account effects are that the bankʹs assets and liabilities by $1 million and that the Fedʹs assets and liabilities by $1 million.
A) decline; decline
B) increase; decline
C) decline; increase
D) increase; increase
Answer
This answer is hidden. It contains 1 characters.
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