The Graph Shown Displays the Relationship Between Money and the Interest

question 20

Multiple Choice

The graph shown displays the relationship between money and the interest rate. The Fed could use open market operations to expand the economy from:

• A) M ^S1 to M ^S3.
• B) M ^S3 to M ^S2.
• C) M ^S4 to M ^S3.
• D) M ^S2 to M ^S1.

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