When the central bank buys an asset from the public, ________ in central bank liabilities associated with the asset purchase causes the money supply to ________. When the central bank sells an asset to the public, ________ in central bank liabilities causes the money supply to ________.

A) an increase; expand; a decrease; shrink

B) a decrease; shrink; an increase; expand

C) an increase; shrink; a decrease; expand

D) a decrease; expand; an increase; shrink

Answer rating: 100% (QA)

B a decrease shrink an increase expand A central bank is a financial institution given privileged co... View the full answer