Suppose the Federal Reserve buys $50 million worth of securities from a commercial bank. As a result, the monetary base ________, and the quantity of money will ________ $50 million due to the ________
A) increases; increase by more than; money multiplier
B) decreases; decrease by more than; money multiplier
C) increases; increase by more than; expenditure multiplier
D) decreases; decrease by less than; expenditure multiplier
E) increases; decrease by; currency drain
A
Economics
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Under a constant growth rate of money rule of 5 percent in an economy in which Real GDP grows at an average rate of 5 percent and velocity is constant, the inflation rate is
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