question archive If the Federal Reserve buys $40,000 worth of securities from the non-bank public, and the non-bank public then deposits the payment in their bank account, what happens next? a
If the Federal Reserve buys $40,000 worth of securities from the non-bank public, and the non-bank public then deposits the payment in their bank account, what happens next? a
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If the Federal Reserve buys $40,000 worth of securities from the non-bank public, and the non-bank public then deposits the payment in their bank account, what happens next?
a. R increases by $40,000 and the MB rises by $40,000.
b. C and R both increase by $40,000, and MB increases by $80,000.
c. C increases by $40,000 and the MB increases by $40,000.
d. C decreases by $40,000 and the MB increases by $40,000.
Option 1
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