Multiple Choice
The figure given below shows equilibrium in a money market. If S is the initial supply curve, the movement from S to S* can be attributed to:
A) a decrease in the required reserve ratio.
B) the purchase of U.S. Treasury securities by the Fed.
C) the sale of U.S. Treasury securities by the Fed.
D) a decrease in the discount rate.
E) a decrease in excess reserves in the banking system.
Correct Answer:
Verified
Correct Answer:
Verified
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