In the Short Run, When the Fed Increases the Quantity

question 114

Multiple Choice

In the short run, when the Fed increases the quantity of money

• A) bond prices rise and the interest rate falls.
• B) bond prices fall and the interest rate rises.
• C) the demand for money increases.
• D) the supply of money curve shifts leftward.

---

Definitions:

Creative People

Individuals who think outside the box and innovate by generating novel and original ideas or solutions.

Motivated

Refers to the internal or external factors that stimulate the desire and energy in people to be continually interested and committed to a job, role, or subject, or to make an effort to attain a goal.

Characteristics

Features or qualities that define an individual, object, or concept.

Creative People

Individuals who are able to think about or organize new and original ideas, often leading to innovative solutions or creations.