Use the Following to Answer Questions

question 118

Multiple Choice

Use the following to answer questions :
Figure: The Money Supply and Aggregate Demand
-(Figure: The Money Supply and Aggregate Demand) Look at the figure The Money Supply and Aggregate Demand. Panel _____ illustrates what happens when the Fed decides to _____ Treasury bills and _____ the money supply.

• A)(a); sell; increase
• B)(b); buy; increase
• C)(b); sell; decrease
• D)(a); buy; decrease

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