Reference no: EM132070804

When the Federal Reserve System conduct open market operations by purchasing securities from a commercial bank.....[choose one of the first two responses, one of the next two, and one of the last two] excess reserves at the commercial bank rise excess reserves at the commercial bank fall interest rates tend to rise borrowing and business investment spending will rise the deposit expansion process will shrink the money supply by some multiple of the change in excess reserves the deposit expansion process will expand the money supply by some multiple of the change in excess reserves