Which of the following will decrease if the Fed sells bonds?

If the Fed buys more bonds from the public, then the money supply will:

A. Decrease and the aggregate demand curve will shift to the right. B. Increase and the aggregate demand curve will shift to the right. C. Increase and the aggregate demand curve will shift to the left. D. Decrease and the aggregate demand curve will shift to the left.

To increase the quantity of money in the economy, the Federal Reserve can

A) print more money and give it to the banks. B) increase the required reserve ratio. C) buy government bonds in an open market operation. D) sell government bonds in an open market operation. E) cut taxes.