6. Suppose that a change in transaction technology reduces the amount of currency people want to hold

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6. Suppose that a change in transaction technology reduces the amount of currency people want to hold relative to demand deposits. If the Fed does nothing, the money supply tends to . But the Fed can hold the money supply constant by bonds in openmarket operations.

a. increase, buying

b. increase, selling

c. decrease, buying

d. decrease, selling

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Macroeconomics

ISBN: 9781319263904

11th Edition

Authors: N. Gregory Mankiw

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