​The Figure Given Below Shows Equilibrium in a Money Market

question 34

Multiple Choice

​The figure given below shows equilibrium in a money market.If S is the initial supply curve,the movement from S to S* can be attributed to: Figure 152

• A)a decrease in the required reserve ratio.
• B)the purchase of U.S.Treasury securities by the Fed.
• C)the sale of U.S.Treasury securities by the Fed.
• D)a decrease in the discount rate.
• E)a decrease in excess reserves in the banking system.

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