Beginning from an equilibrium at e1 in exhibit 16-2, an increase in the money supply from $400 billion to $600 billion causes people to: group of answer choices
a. sell bonds and drive the price of bonds down.
b. buy bonds and drive the price of bonds up.
c. buy bonds and drive the price of bonds down.
d. sell bonds and drive the price of bonds up.
Answers: 3
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Beginning from an equilibrium at e1 in exhibit 16-2, an increase in the money supply from $400 billi...
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