Money Supply Money Demand Interest Rate Investment (at Interest Rate Shown) $ 400 $ 600 2% $ 700 $ 400 500 3 600 $ 400 400 4 500 $ 400 300 5 300 $ 400 200 6 200 Answer the question based on the information in the table. If the Fed wished to reduce the interest rate by 1 percentage point, in the open market it could Multiple Choice sell enough bonds to increase the money supply by $200. buy enough bonds to decrease the money supply by $200. sell enough bonds to decrease the money supply by $100. buy enough bonds to increase the money supply by $100