Figure 11-3 -Refer to Figure 11-3. by Shifting the Supply Curve from Supply

Multiple Choice

Figure 11-3
-Refer to Figure 11-3. By shifting the supply curve from S₁ to S₂, the Fed will be

A) buying bonds in the open market which decreases the money supply.
B) selling bonds in the open market which decreases the money supply.
C) buying bonds in the open market which increases the money supply.
D) selling bonds in the open market which increases the money supply.