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a decrease in the money supply

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


Which of the following actions is most likely to result in an increase in the money supply?

The Fed buys millions of dollars in Treasury bonds


Which of the following actions is most likely to result in in an increase in the money supply?

The discount rate on overnight loans is lowered.


Result in a decrease in the money supply?

The government sells a new batch of Treasury bonds.


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