Figure 15-3 -Refer to Figure 15-3.In the figure above,when the money supply shifts from MS₁ to MS₂,at the interest rate of 3 percent households and firms will A)buy Treasury bills. B)sell Treasury bills. C)neither buy nor sell Treasury bills. D)want to hold more money.

Question

Quizplus · Accepted Answer

When the money supply increases, the interest rate falls. At a lower interest rate, households and firms will want to hold more money, so they will buy Treasury bills.

Figure 15-3 -Refer to Figure 15-3.In the Figure Above,when the Money Supply