Which of the Following Will Cause a Leftward Shift in the Money

question 53

Multiple Choice

Which of the following will cause a leftward shift in the money demand curve?

• A) An open market sale of bonds by the central bank.
• B) An open market purchase of bonds by the central bank.
• C) An increase in income.
• D) A decrease in the interest rate.
• E) A decrease in income.

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Definitions:

Operating Assets

Assets used in the day-to-day operations of a business to generate revenue, including cash, inventory, and property, plant, and equipment.

Required Rate Of Return

The minimum percentage return an investor expects to achieve from an investment.

Operating Income

Revenue from business operations after operating expenses and before interest and taxes.

Transfer Prices

Prices charged for the sale of goods or services between departments or subdivisions of the same company.