How does the Federal Reserve Bank’s selling of newly issued Treasury bonds affect the money supply?
A. The funds used to pay for the bonds are taken out of circulation, decreasing the money supply.
B. There will be no effect on the size of the money supply.
C. The funds used to pay for the bonds are taken out of circulation, increasing the money supply.
D. The funds used to pay for the bonds are put into circulation, decreasing the money supply.
E. The funds used to pay for the bonds are put into circulation, increasing the money supply.