If the Fed buys Treasury bills,this will shift the
A)money supply curve to the right.
B)money supply curve to the left.
C)money demand curve to the right.
D)money demand curve to the left.

Question

Quizplus · Accepted Answer

When the Fed buys Treasury bills, it increases the money supply in the economy, which will shift the money supply curve to the right. This is because the Fed is injecting more money into the economy, which will enable banks to lend more and people to spend more. As a result, the supply of money will increase, leading to a shift to the right in the money supply curve.

If the Fed Buys Treasury Bills,this Will Shift the