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Suppose that when the Fed decreases the money supply, households and firms initially hold less money than they want to, relative to other financial assets.
Suppose that when the Fed decreases the money supply, households and firms initially hold less money than they want to, relative to other financial assets. As a result, households and firms will Treasury bills and other financial assets, thereby their prices, and their interest rates. A. sell; increasing; decreasing B. sell; decreasing; increasing C. buy; increasing, decreasing D. buy, decreasing; decreasing
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