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​The Figure Given Below Shows Equilibrium in a Money Market

Question 34

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: Figure 152
​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: Figure 152 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.


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.

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