Question

The Fed sells $300 million U.S. government securities to commercial banks. This action leads to ________ in Fed assets and ________ in Fed liabilities.
A) a $300 million increase; a $300 million increase
B) a $300 million increase; a $300 million decrease
C) no change; no change
D) a $300 million decrease; a $300 million decrease in
E) a $300 million decrease; a $300 million increase

Answer

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