Use the Following to Answer Questions

question 138

Multiple Choice

Use the following to answer questions .
Exhibit: Monetary Policy and Long-Run Aggregate Demand and Aggregate Supply
-(Exhibit: Monetary Policy and Long-Run Aggregate Demand and Aggregate Supply) If the economy is at point b, the Federal Reserve can close the output gap by selling bonds. In the bond market,

• A) the supply curve shifts right, leading to a decrease in bond prices and an increase in interest rates.
• B) the demand curve shifts right, leading to an increase in bond prices and a decrease in interest rates.
• C) the supply curve shifts left, leading to an increase in bond prices and an increase in interest rates.
• D) the demand curve shifts left, leading to a decrease in bond prices and an increase in interest rates.

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Definitions:

Sensor Division

A specialized business unit within a company focused on the development, production, and marketing of sensor technology.

Transfer Price

The fee applied to goods or services moved between various sections or units of the same enterprise.

Variable Expenses

Expenditures that adjust in relation to the business's operation level or production quantity.

Shipping Costs

The expenses associated with the delivery of goods from a seller to the buyer, which can include packaging, postage, and handling fees.