Question: In the liquidity preference framework, where MS intersects M at a nominal interest rate greater than zero, if the monetary authorities decrease the money supply

In the liquidity preference framework, where MS intersects M at a nominal interest rate greater than zero, if the monetary authorities decrease the money supply and as a result, households and firms and interest rates will sell more bonds, the prices of those bonds will O a fall: fall rise fall O.C. riser rise d. fall: rise

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