Exhibit 20-2  Money Market Demand and Supply Curves Beginning from an Equilibrium

question 178

Multiple Choice

Exhibit 20-2  Money market demand and supply curves Beginning from an equilibrium at E₁ in Exhibit 20-2, an increase in the money supply from $400 billion to $600 billion causes people to:

• A) sell bonds and drive the price of bonds down.
• B) buy bonds and drive the price of bonds up.
• C) buy bonds and drive the price of bonds down.
• D) sell bonds and drive the price of bonds up.

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Definitions:

Interacting

The process of communicating or engaging in activities with others to exchange information or develop professional or social contacts.

Socializing

Engaging in interactions and activities with others for the purpose of building relationships, networking, or leisure.

Managerial Activities

involve tasks and responsibilities that managers engage in to plan, organize, direct, and control resources to achieve organizational goals.

Managerial Activity

The range of actions and tasks performed by managers aimed at achieving organizational goals, including planning, organizing, leading, and controlling.