If People Decide to Hold Less Currency Relative to Deposits,the

question 104

Multiple Choice

If people decide to hold less currency relative to deposits,the money supply

• A)falls.The Fed could lessen the impact of this by buying Treasury bonds.
• B)falls.The Fed could lessen the impact of this by selling Treasury bonds.
• C)rises.The Fed could lessen the impact of this by buying Treasury bonds.
• D)rises.The Fed could lessen the impact of this by selling Treasury bonds.