10. Assume a fixed demand for money curve, and the Fed decreases the money supply. In response,...
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10. Assume a fixed demand for money curve, and the Fed decreases the money supply.
In response, people will
a. sell bonds, thus driving up the interest rate.
b. sell bonds, thus driving down the interest rate.
c. buy bonds, thus driving up the interest rate.
d. buy bonds, thus driving down the interest rate.
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