If the Fed acts to decrease the money supply,
A) it will increase the supply of bonds, drive bond prices up, and drive interest rates down.
B) it will increase the demand for bonds, drive bond prices down, and drive interest rates down.
C) it will increase the supply of bonds, drive bond prices down, and drive interest rates up.
D) it will increase the demand for bonds, drive bond prices up, and drive interest rates down.
Correct Answer:
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