Question

Which diagram provides an accurate example of how the government uses open market operations?

Answer 1

answer: for me it was D I got it wrong with B

Explanation:I did it right now using answer B but did not work it was D.

Answer 2

The correct answer is B, as if the government sells more Treasury bonds than it buys, the money supply will decrease.

This happens because when selling bonds, the government is taking money from the market and depositing it in their reserves, so there is less money circulating among citizens, so the supply of money decreases.