Use the following to answer questions . Exhibit: Monetary Policy 2 -(Exhibit: Monetary Policy 2) By shifting the supply curve from S₁ to S₂, the Fed will be A) buying bonds in the open market which decreases the money supply. B) selling bonds in the open market which decreases the money supply. C) buying bonds in the open market which increases the money supply. D) selling bonds in the open market which increases the money supply.

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The Answer of Use the following to answer questions . Exhibit: Monetary Policy 2 -(Exhibit: Monetary Policy 2) By shifting the supply curve from S₁ to S₂, the Fed will be A) buying bonds in the open market which decreases the money supply. B) selling bonds in the open market which decreases the money supply. C) buying bonds in the open market which increases the money supply. D) selling bonds in the open market which increases the money supply.

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