To stabilize real GDP when the money demand curve shifts on its own, the Fed must change the money supply

At the beginning of World War II, a rationing system was established in the United States. Ration stamps or cards were issued for a variety of commodities such as canned milk and gasoline. Canned milk was only available to babies and small children

In this example, canned milk was allocated through A) personal characteristics. B) market price. C) majority rule. D) first-come, first-served.

Suppose the Fed conducts an open market sale. We can expect this transaction to

A) reduce the money supply, increase bond prices, and lower interest rates. B) increase the money supply, lower bond prices, and lower interest rates. C) increase the money supply, raise bond prices, and lower interest rates. D) reduce the money supply, reduce bond prices, and increase interest rates.