What will happen to the money ?supply

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Reference no: EM131092347

The Fed buys? $100 million of bonds from the public and also lowers the reserve requirement r. What will happen to the money ?supply?

A. The money supply will increase.

B. The money supply will not change.

C. The money supply will decrease.

D. The effect on the money supply is ambiguous.

Reference no: EM131092347

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