Use the Following to Answer Questions

question 284

Multiple Choice

Use the following to answer questions:
Figure: Changes in the Money Supply
-(Figure: Changes in the Money Supply) Look at the figure Changes in the Money Supply. If the supply of money shifts from S₁ to S₂, the Federal Reserve must have _____ Treasury bills in the open market.

• A)sold
• B)bought
• C)issued new
• D)borrowed

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