If the economy experiences a contractionary gap and the RBI stimulates

1.	If the economy experiences a contractionary gap and the RBI stimulates the economya)The money supply is increasing because the RBI prints more moneyb)The money supply is decreasing because the RBI makes open-market salesc)The money supply is increasing because the RBI makes open-market purchasesd)The money supply is decreasing because the RBI hoards money
Answer» Answer: b)the MONEY supply is decreasing because the RBI MAKES OPEN market sales

If the economy experiences a contractionary gap and the RBI stimulates the economya)The money supply is increasing because the RBI prints more moneyb)The money supply is decreasing because the RBI makes open-market salesc)The money supply is increasing because the RBI makes open-market purchasesd)The money supply is decreasing because the RBI hoards money

Answer»

Answer:

b)the MONEY supply is decreasing because the RBI MAKES OPEN market sales