Figure 21-2

question 337

Multiple Choice

Figure 21-2. On the left-hand graph, MS represents the supply of money and MD represents the demand for money; on the right-hand graph, AD represents aggregate demand. The usual quantities are measured along the axes of both graphs.
-Refer to Figure 21-2. If the money-supply curve MS on the left-hand graph were to shift to the right, this would

• A)represent an action taken by the Federal Reserve.
• B)shift the AD curve to the left.
• C)create, until the interest rate adjusted, an excess demand for money at the interest rate that equilibrated the money market before the shift.
• D)All of the above are correct.

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Definitions:

Competitive Advantage

This is the attribute that allows an organization to outperform its rivals, achieved through offering greater value to consumers or operating more efficiently.

Human Capital

The total set of skills, understanding, and virtual assets owned by individuals that have the potential to create economic profits for the individuals, the companies they work for, or their local community.

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Field of OB

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