When the Fed Uses Open Market Operations by Selling Some

question 35

Multiple Choice

When the Fed uses open market operations by selling some of its Treasury securities to investors in the U.S., there will be

• A)an outward shift in the supply schedule of loanable funds.
• B)an inward shift in the supply schedule of loanable funds.
• C)no shift in the supply schedule of loanable funds.
• D)an outward shift in the demand schedule for loanable funds.

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