Question: 12. Beginning from an equilibrium at E2 in Exhibit 12, a decrease in the money supply from $600 billion to $400 billion causes people to

12. Beginning from an equilibrium at E2 in Exhibit 12, a decrease in the money supply from $600 billion to $400 billion causes people to

a. sell bonds and drive the price of bonds down.

b. buy bonds and drive the price of bonds up.

c. buy bonds and drive the price of bonds down.

d. sell bonds and drive the price of bonds up.

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