Figure 11-2 -Refer to Figure 11-2. to Shift the Demand Curve from Demand

question 140

Multiple Choice

Figure 11-2
-Refer to Figure 11-2. To shift the demand curve from D₁ to D₂, the Fed will be

• A) buying bonds in the open market which decrease the money supply.
• B) selling bonds in the open market which decrease the money supply.
• C) buying bonds in the open market which increases the money supply.
• D) selling bonds in the open market which increases the money supply.

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Definitions:

International Trade

The trading of products, services, and money across the borders or territories of different countries.

Merchandise Exporting

The act of sending goods produced in one country to be sold in another country.

GATT

The General Agreement on Tariffs and Trade, an international trade treaty designed to boost economic recovery after World War II by reducing or eliminating trade barriers such as tariffs and quotas.

International Trade

The exchange of goods and services between countries.