Which of the Following Would Cause the Quantity of Wheat

question 56

Multiple Choice

Which of the following would cause the quantity of wheat bread demanded to increase, but NOT the demand for wheat?

• A) a new scientific study demonstrating that wheat bread reduces the risk of colon cancer
• B) a decrease in the price of rye bread
• C) an increase in the number of farmers growing wheat
• D) a reduction in the price of rye used to produce rye bread

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Definitions:

Money Supply

The total quantity of money available in an economy at a specific time, including currency and various types of bank deposits.

Open Market Purchases

The buying of government securities by a central bank to inject money into the economy.

Fed's Control

The range of monetary policy tools and measures the Federal Reserve (the central bank of the United States) uses to control the supply of money, aiming to influence economic conditions, particularly inflation and unemployment rates.

Money Supply

Pertains to the aggregate sum of funds—including cash, coins, and bank account balances—present within an economy at a given moment.