Question 12 Not yet answered Marked out of 1.00 l7 Flag question Use Exhibit 1. Which of the following statements is (are) correct? (x) If the Fed bought bonds in the open market then the money supply would shift rightward from M31 to M82 and the interest rate would decrease from r1 to r2. (y) If the actual interest rate is r2 and the target rate for the Fed is r1 then the Fed should sell bonds to move the interest rate to its target. (2) If the money supply Is M81 and the interest rate is r2, then the market for Ii-IlllJ zilliililiiiilii money is not in equilibrium and the interest rate will rise. 0 a. (x) and (y) only 0 b (X). (Y) and (Z) 0 c. (x) and (2) only 0 d. (2) only 0 e. (y) and (2) only