If the Money Supply Curve Is Vertical, an Increase in Bond

question 159

Multiple Choice

If the money supply curve is vertical, an increase in bond interest rates

• A) is likely to cause banks to supply more money.
• B) is likely to cause banks to supply less money.
• C) has no effect on the money supply.
• D) is likely to cause the Federal Reserve to increase the money supply.

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Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that activates the body's fight-or-flight response during stressful situations.

Parasympathetic Nervous System

A division of the autonomic nervous system responsible for conserving energy and lowering the heart rate, among other actions, to maintain homeostasis.

Autonomic Nervous System

The part of the nervous system responsible for control of the bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.

Self Report

A method in research where participants provide information about themselves, typically through questionnaires or interviews.