The primary reason for the recent reduction in the number of banks is

Refer to Figure 26-5. In the figure above, the movement from point A to point B in the money market would be caused by

A) an open market sale of Treasury securities by the Federal Reserve. B) an increase in the price level. C) a decrease in real GDP. D) an increase in the required reserve ratio by the Federal Reserve.

Those who prefer a passive approach to the conduct of macroeconomic policy tend to believe that markets are self-correcting

a. True b. False Indicate whether the statement is true or false