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T U 17) Which of the following represents an action by the Federal Reserve that is designed to decrease the money supply? Assignment 2, BECO 1001, 2021-2022, 1, Dr. Qiao Zhuo, FBA, University of Macau A) Buying government securities in the open market B) A decrease in the required reserve ratio C) Selling government securities in the open market D) None of above 18) An open market of $100 million of securities by the Fed A) sale; increases the Fed's liabilities B) sale; increases bank reserves C) purchase; decreases the Fed's liabilities D) purchase; increases bank reserves 19) If the quantity of money demanded is more than the quantity of money supplied, then the interest rate will A) change in an uncertain direction. B) rise C) remain constant. D) fall. 20) MS Interest rate (%) Md 150, Money ($ million) A decrease in the money supply and an increase in the GDP will, for sure, A) decrease the equilibrium interest rate. B) increase the equilibrium interest rate. C) not change the equilibrium interest rate. D) increase equilibrium money holdings