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When the money market is drawn with the value of money on the vertical axis, if the Federal Reserve buys bonds, then the money supply curve.
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When the money market is drawn with the value of money on the vertical axis, if the Federal Reserve buys bonds, then the money supply curve.

User Jeremy
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Answer:

The correct answer is: shifts rightward, causing the price level to rise.

Step-by-step explanation:

The money supply curve portraits the money supplied in the market at a specific interest rate. The money supply is increased by the central bank by purchasing bonds or other assets -in this case, the Federal Reserve- causing the money supply curve more to the right which at the same time lowers the interest rate.

User Axemasta
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