Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions .
Exhibit: Effects of Monetary Policy
-(Exhibit: Effects of Monetary Policy) Which of the following actions by the Fed could have caused the movement from AD₁ to AD₂ in Panel (a) ?

A) selling government bonds in the open market
B) buying government bonds in the open market
C) increasing the discount rate
D) increasing the federal funds rate