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Suppose that the reserve-ratio is 0.2 and the cash-deposit ratio is 1. To decrease the money...

Suppose that the reserve-ratio is 0.2 and the cash-deposit ratio is 1. To decrease the money supply by $200, the central bank should __________ bonds that amount to _____.

a) sell; $80 b) sell; $120 c) buy; $80 d) buy; $120

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