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Figure: Changes in the Money Supply
-(Figure: Changes in the Money Supply) Refer to Figure: Changes in the Money Supply. If the supply of money shifts from S₁ to S₂, the Federal Reserve must have _____ Treasury bills in the open market.

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Use the following to answer questions:
Figure: Changes in the Money Supply

-(Figure: Changes in the Money Supply) Refer to Figure: Changes in the Money Supply. If the supply of money shifts from S₁ to S₂, the Federal Reserve must have _____ Treasury bills in the open market.

Quizplus · Accepted Answer

If the supply of money shifts to the right from S₁ to S₂, it means the money supply has increased. To increase the money supply, the Federal Reserve must have bought Treasury bills in the open market, injecting new money into the economy. Therefore, the correct answer is option B, bought.

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