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4 Homa Question 8 (4 marks) It is correct to say that: a) if there is too much money demand, the central bank reduces money

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4 Homa Question 8 (4 marks) It is correct to say that: a) if there is too much money demand, the central bank reduces money supply by selling bonds on the open market. b) by fixing the interest rate, a central banks loses control over money supply. c) if there is too little money demand, the central bank reduces money supply by selling bonds on the open market. d) central banks mainly control money supply by fixing the monetary base. (4 marks)

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