Question

If the Fed sells government securities to a member of the nonbank public, then the resulting effect on the quantity of money is
A) much larger than if the securities were sold to a bank.
B) much smaller than if the securities were sold to a bank.
C) the same as if the securities were sold to a bank.
D) that there is no change in the quantity of money.
E) None of the above answers is correct.

Answer

This answer is hidden. It contains 1 characters.