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Exhibit 15.2 -Figure 15.2 Shows Equilibrium in a Money Market. If S

Question 50

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Exhibit 15.2
Exhibit 15.2 -Figure 15.2 shows equilibrium in a money market. If S is the initial supply curve, the movement from S to S* can be attributed to _____ A) a decrease in the required reserve ratio. B) the purchase of U.S. Treasury securities by the Fed. C) the sale of U.S. Treasury securities by the Fed. D) a decrease in the discount rate. E) a decrease in excess reserves in the banking system.
-Figure 15.2 shows equilibrium in a money market. If S is the initial supply curve, the movement from S to S* can be attributed to _____

A) a decrease in the required reserve ratio.
B) the purchase of U.S. Treasury securities by the Fed.
C) the sale of U.S. Treasury securities by the Fed.
D) a decrease in the discount rate.
E) a decrease in excess reserves in the banking system.

Correct Answer: