Refer to Figure 16.2

Multiple Choice

Refer to Figure 16.2.
-Refer to Figure 16.2.The sale of bonds by the Fed in the open market will result in:

A) A decrease in the money supply and a move from AD₂ to AD₁.
B) An increase in the money supply and a move from AD₁ to AD₂.
C) A decrease in the money supply and a move from AS₂ to AS₁.
D) An increase in the money supply and a move from AS₁ to AS₂.