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    Principles of Economics Study Set 6
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    Exam 26: Monetary Policy and the Fed
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    Figure 11-2 -Refer to Figure 11-2.To Shift the Demand Curve from D<sub>1</sub>
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Figure 11-2 -Refer to Figure 11-2.To Shift the Demand Curve from D1

Question 141

Question 141

Multiple Choice

Figure 11-2
Figure 11-2    -Refer to Figure 11-2.To shift the demand curve from D<sub>1</sub> to D<sub>2</sub>, the Fed _______ bonds in the open market which _______ the money supply. A) buying; decreases B) selling; decreases C) buying; increases D) selling; increases
-Refer to Figure 11-2.To shift the demand curve from D1 to D2, the Fed _______ bonds in the open market which _______ the money supply.


A) buying; decreases
B) selling; decreases
C) buying; increases
D) selling; increases

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