If the Federal Reserve sells $80,000 in Treasury bonds to a bank at 7% interest, what is the immediate effect on the money supply?
A. It is decreased by $80,000.
B. It is increased by $80,000.
C. It is decreased by $85,600.
D. It is increased by $85,600.

Questions 7-8. use the following table to answer. year 2006 2007 2008 2009 2010 2011 2012 2013 cpi 201.6 207.342 215.303 214.537 218.056 224.939 229.594 232.957 7. suppose you bought a house in 2006 for $120,000. use the table above to calculate the 2013 value adjusted for inflation. (round to the nearest whole number) 8. suppose you bought a house in 2013 for $90,000. use the table above to calculate the 2006 value adjusted for inflation. (round to the nearest whole number)