Figure 17-2

-Refer to Figure 17-2.In the figure above,the movement from point A to point B in the money market would be caused by

Question

Figure 17-2
 
-Refer to Figure 17-2.In the figure above,the movement from point A to point B in the money market would be caused by

Quizplus · Accepted Answer

An open market sale of Treasury securities by the Federal Reserve would decrease the money supply, increasing the interest rate (as shown in the graph) and causing the movement from point A to point B. A, B, and D are incorrect because they do not directly affect the money supply or interest rate in the money market.

Figure 17-2 -Refer to Figure 17-2.In the Figure Above,the Movement from Point