Use the following to answer questions :
Figure: Monetary Policy I 
-(Figure: Monetary Policy I) Look at the figure Monetary Policy I. If the economy is initially in equilibrium at E1 and the central bank chooses to buy Treasury bills, _____ shift to _____ a(n) _____ gap.
Definitions:
Outstanding Checks
These refer to checks that have been written and recorded in the accounting records but have not yet cleared the bank account.
Accounts Receivable
Financial obligations of customers towards a business for items or services offered, payable later.
Accounts Payable
Liabilities to creditors that represent amounts the company owes for purchases made on credit.
NSF Checks
Non-Sufficient Funds (NSF) checks are checks that cannot be processed because the drawer's account does not have enough funds.
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