The Graph Shown Displays the Relationship Between Money and the Interest

question 11

Multiple Choice

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

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

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