In the IS-LM model, the impact of an increase in government purchases in the goods market has ramifications in the money market, because the increase in income causes a(n) ______ in money ______.

When the Federal Reserve increases the money supply, people ________

A) decrease their purchases of bonds and other financial assets B) may, in the short run, increase their purchases of goods and services C) decrease the quantity of money holdings D) all of the above E) none of the above

Which of the following would decrease the value of money?

a. Money demand exceeds money supply b. The Federal Reserve sells government bonds c. The velocity of money decreases d. The price level decreases