Ceteris paribus,if the Fed sells bonds through open market operations,the money
A)Supply curve should shift rightward.
B)Supply curve should shift leftward.
C)Demand curve should shift rightward.
D)Demand curve should shift leftward.

Question

Quizplus · Accepted Answer

When the Federal Reserve sells bonds through open market operations, it effectively removes money from the banking system, which decreases the overall money supply. This action causes the money supply curve to shift leftward, indicating a reduction in the quantity of money available at any given interest rate.

Ceteris Paribus,if the Fed Sells Bonds Through Open Market Operations,the