The Price Level Falls If Either

question 301

Multiple Choice

The price level falls if either

• A)money demand or money supply shifts rightward.
• B)money demand shifts rightward or money supply shifts leftward.
• C)money demand shifts leftward or money supply shifts rightward.
• D)money demand or money supply shifts leftward.

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Definitions:

Federal Reserve System

The Federal Reserve System, which is the main banking authority in the U.S., oversees monetary policy.

Elastic Currency

A currency system that can expand or contract in supply in response to economic needs, often managed by a central banking authority.

Nation's Banks

Banks that operate within a specific country, serving its economy and citizens.

Federal Reserve

The central banking system of the United States, responsible for regulating the country's money supply and interest rates.