Exhibit 15.2 -Figure 15.2 Shows Equilibrium in a Money Market. If S

Multiple Choice

Exhibit 15.2

-Figure 15.2 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.