-Assume an Original Balance Sheet: Refer to Table 14

question 70

Multiple Choice

-Assume an original balance sheet: Refer to Table 14.2.If the Fed sells $20 billion in bonds to the public,all of the following are true except

• A)The public will hold $495 billion worth of bonds.
• B)M1 will decrease initially by $20 billion.
• C)M2 will expand initially by $20 billion.

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Definitions:

Gaseous Phase

A state of matter characterized by neither a defined shape nor volume, with molecules moving freely, much faster than in liquid or solid states.

Phosphorus Cycle

The worldwide circulation of phosphorus from the abiotic environment into living things and back into the abiotic environment.

Nitrogen-Fixing Bacteria

Bacteria capable of converting atmospheric nitrogen into organic compounds usable by plants.

Gaseous Nitrogen

Nitrogen in its gaseous state, making up about 78% of the Earth's atmosphere, and is chemically inert under most conditions.