Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions .
Exhibit: Monetary Policy 1
-(Exhibit: Monetary Policy 1) To shift the demand curve from D₁ to D₂, the Fed will be

A) buying bonds in the open market which decrease the money supply.
B) selling bonds in the open market which decrease 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.