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22 November, 06:44

Which of the following best explain why the money supply is decreased whn the government issues bonds?

A. The sale of bonds enables the gobernment to run a budget surplus

B. The purchase of bonds reduces the bond buyers' bank accounts

C. The issuing of bonds increases competition among private banks

D. the trading of bonds interferes with other types of economic activity

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  1. 22 November, 07:24
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    B. The purchase of bonds reduces the bond buyers' bank accounts
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