Figure 34-6 -Refer to Figure 34-6. a Shift of the Money-Demand Curve

question 123

Multiple Choice

Figure 34-6
-Refer to Figure 34-6. A shift of the money-demand curve from MD₂ to MD₁ is consistent with which of the following sets of events?

• A)The government cuts taxes, resulting in an increase in people's incomes.
• B)The government reduces government spending, resulting in a decrease in people's incomes.
• C)The Federal Reserve increases the supply of money, which decreases the interest rate.
• D)The Federal Reserve decreases the supply of money, which increases the interest rate.

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Definitions:

Economic Sociology

A branch of sociology that examines economic phenomena including markets, exchange, and capital systems.

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The organizational and other characteristics of a market, determining the nature of competition and pricing strategies within it.

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