According to Liquidity Preference Theory,the Money-Supply Curve Would Shift If

question 162

Multiple Choice

According to liquidity preference theory,the money-supply curve would shift if the Fed

• A)engaged in open-market operations.
• B)increased money demand.
• C)increased the real income.
• D)did any of the above.

---

Definitions:

Common Shareholders

Individuals or entities that hold common stock in a corporation, entitling them to dividends and voting rights, but placing them last in priority for company assets in case of liquidation.

Dissolve

To formally end or terminate an entity, such as a corporation, partnership, or marriage, through legal means.

Outstanding Common Shares

The total number of common shares of a corporation that are issued and currently held by shareholders.

Total Equity

The total net value of a company, calculated as the difference between its total assets and total liabilities.