An open market ________ by the Fed decreases the money supply, ...

[schs14]

An open market ________ by the Fed decreases the money supply, which leads to ________ interest rates and a fall in investment spending.
 
  A) sale; decreased B) sale; increased
  C) purchase; increased D) purchase; decreased

Question 2

In the figure above, a price of 15 per dozen roses results in
 
  A) a shortage.
  B) a surplus.
  C) equilibrium.
  D) downward pressure on the price of roses.
  E) an eventual leftward shift of the demand curve and/or rightward shift of the supply curve.

[ApricotDream]

Answer to Question 1

B

Answer to Question 2

A