![](https://cos-cdn.shuashuati.com/pipixue-web/2020-1231-2005-12/ti_inject-812ce.png)
If the Fed increases the monetary base by $40 billion through open-market operations:
A.
GDP will increase by $40 billion.
B.
the price level will increase by $40 billion.
C.
the U.S. government debt held by the public has been reduced by $40 billion.
D.
government spending has increased by $40 billion.