All else equal,the money supply should decrease when
A) banks withdraw currency from the Fed.
B) the Fed makes loans at the discount window.
C) the Fed sells securities on the open market.
D) the Fed buys securities on the open market.
E) None of the above

Question

Quizplus · Accepted Answer

When the Fed sells securities on the open market, it decreases the amount of money available to banks and individuals in the economy. This decreases the money supply. The other choices either have no effect or increase the money supply.

All Else Equal,the Money Supply Should Decrease When