If the Reserve Bank Increases the Quantity of Money, Then

question 6

Multiple Choice

If the Reserve Bank increases the quantity of money, then

• A) the quantity of real GDP demanded decreases and there is a movement up along the AD curve.
• B) the quantity of real GDP demanded increases and there is a movement down along the AD curve.
• C) both the aggregate demand curve and the aggregate supply curve shift leftward.
• D) aggregate demand decreases and the AD curve shifts leftward.
• E) aggregate demand increases and the AD curve shifts rightward.

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Definitions:

Net Income

The total profit or earnings after all expenses and taxes have been deducted from revenue.

Manufacturing Overhead

Indirect costs associated with manufacturing that are not directly allocable to specific units produced, including maintenance, supplies, and depreciation.

Selling Expenses

Costs associated with marketing and selling a company's products or services, including advertising and sales personnel salaries.

Accounts Receivable

Money owed to a company by its customers for products or services already delivered but not yet paid for.