Because the Fed determines the money supply, the money supply curve is:

Subtracting borrowed reserves from the monetary base obtains

A) reserves. B) high-powered money. C) the nonborrowed monetary base. D) the borrowed monetary base.

If the Federal Reserve conducts open market ________, the money supply ________, shifting the LM curve to the left, everything else held constant

A) purchases; decreases B) sales; decreases C) purchases; increases D) sales; increases