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The Fed sells $5 billion worth of Treasury bonds on the open market.

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Q: The fed buys 5 billion worth of treasury bonds on the open market what effect does this have on the money supply?
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What effect will the feds sells 5 billion worth of treasury bonds on the open market have on the money supply?

The Federal Reserve Bank can buy and sell these bonds to raise or lower bank deposits.


What would happen if the Fed sells 5 billion worth of treasury bonds on the open market?

The money supply would stay the same because no new money would be created.


What would happen if the Fed sells 5 billion worth of Treasury bonds on the open market.?

The money supply would stay the same because no new money would be created.


What best explains why the law of supply and demand has an effect on labor market?

In the law of supply and demand the effect on the Labor Market is that labor is a commodity.Labor is a commodity


How can Treasury bonds can have an effect on the size of the money supply?

The Federal Reserve Bank can buy and sell Treasury bonds to raise or lower bank deposits


Which best describes the use of open market operations to influence the money supply?

The Fed buys and sells Treasury bonds in the bond market.


What describes the most likely effect of the sale of a new batch of Treasury bonds?

a decrease in the money supply


What would the effects be if the Feds sold Treasury bonds on the open market?

If bonds are sold then the supply of money decreases.


Which diagram provides an accurate example of how the government uses open market operations?

the money supply is increased


Which of the following describes the most likely effect of the sale of a new batch of Treasury bonds?

A decrease in the money supply


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