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Use the Following to Answer Questions

Question 1

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Use the following to answer questions .
Exhibit: A Shift in Money Supply Use the following to answer questions . Exhibit: A Shift in Money Supply -(Exhibit: A Shift in Money Supply) What happens in the bond market as a result of the shift in the money supply curve from S<sub>1</sub> to S<sub>2</sub>? A) The demand for bonds increases. B) The demand for bonds decreases. C) The supply of bonds increases. D) The supply of bonds decreases.
-(Exhibit: A Shift in Money Supply) What happens in the bond market as a result of the shift in the money supply curve from S1 to S2?


A) The demand for bonds increases.
B) The demand for bonds decreases.
C) The supply of bonds increases.
D) The supply of bonds decreases.

Correct Answer:

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