The liquidity approach to measuring the money supply uses
A) near moneys only. B) M1 only.
C) M2 plus some highly liquid assets. D) M1 plus some highly liquid assets.
Question 2
If the Fed sells U.S. government securities, the
A) money supply decreases, and the money supply curve shifts to the right.
B) money supply decreases, and the money supply curve shifts to the left.
C) money supply increases, and the money supply curve shifts to the left.
D) money supply increases, and the money supply curve shifts to the right.