Question: 2 0 . A a . b . c . d . buys government bonds, and in so doing increases the money supply. buys government

20. A a. b. c. d.
buys government bonds, and in so doing increases the money supply. buys government bonds, and in so doing decreases the money supply. sells government bonds, and in so doing increases the money supply. sells government bonds, and in so doing decreases the money supply.
banks reserve ratio is 10 percent and the bank has $2,000 in deposits. Its reserves amount to $20.
$200. $400. $1,800.

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