The Federal Reserve fights inflation via open market operations, the supply of reserves curve shifts
And the supply of money curve shifts _.

Question

Quizplus · Accepted Answer

When the Federal Reserve fights inflation, it typically sells government securities in open market operations, which reduces the supply of reserves in the banking system, shifting the supply of reserves curve leftward. This action also decreases the money supply, shifting the supply of money curve leftward.

The Federal Reserve Fights Inflation Via Open Market Operations, the Supply