When the Money Market Is Drawn with the Value of Money

question 347

Multiple Choice

When the money market is drawn with the value of money on the vertical axis, if the Federal Reserve sells bonds, then the money supply curve

• A)shifts rightward, causing the value of money measured in terms of goods and services to rise.
• B)shifts rightward, causing the value of money measured in terms of goods and services to fall.
• C)shifts leftward, causing the value of money measured in terms of goods and services to rise.
• D)shifts leftward, causing the value of money measured in terms of goods and services to fall.

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