When the Fed sells bonds on a mass scale
A) bonds go to the Fed, and dollars go into the banking system, so the money supply tends to rise.
B) bonds go to the Fed, and dollars exit the banking system, so the money supply tends to fall.
C) banks have fewer bonds and more dollars, so the money supply tends to rise.
D) banks have more bonds and fewer dollars, so the money supply tends to fall.
D
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