Figure 11-2 -Refer to Figure 11-2. to Shift the Demand Curve from Demand

question 140

Multiple Choice

Figure 11-2
-Refer to Figure 11-2. To shift the demand curve from D₁ to D₂, the Fed will be

• A) buying bonds in the open market which decrease the money supply.
• B) selling bonds in the open market which decrease the money supply.
• C) buying bonds in the open market which increases the money supply.
• D) selling bonds in the open market which increases the money supply.

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