When the Fed buys $10 million in T-bills,interest rates will ________ because the LM curve shifts ________.
A) fall;left due to the increase in the demand for money and loans
B) rise;right due to the increase in the supply of money and loans
C) fall;right due to the increase in the supply of money and loans
D) rise;left due to the increase in the supply of money and loans
Correct Answer:
Verified
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