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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 11-3 -Refer to Figure 11-3.By Shifting the Supply Curve from S<sub>1</sub>
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Figure 11-3 -Refer to Figure 11-3.By Shifting the Supply Curve from S1

Question 61

Question 61

Multiple Choice

Figure 11-3
Figure 11-3    -Refer to Figure 11-3.By shifting the supply curve from S<sub>1</sub> to S<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 11-3.By shifting the supply curve from S1 to S2, 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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