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Suppose that the Federal Reserve purchases $10,000 worth of securities from the non-bank public. Then what happens next?

R decrease by $10,000 and MB rises by $10,000

C and R both decrease by $10,000, and MB falls by $10,000

C increases by $10,000 and the MB increases by $10,000

C increases by $10,000 and the MB falls by $10,000

Financial Management, Finance

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