Exhibit 20-3  Money Market Demand and Supply Curves as Shown

question 196

Multiple Choice

Exhibit 20-3  Money market demand and supply curves As shown in Exhibit 20-3, assume the money supply curve shifts rightward from MS₁ to MS₂ and the economy is operating along the intermediate segment of the aggregate supply curve. The result will be a:

• A) higher investment, lower real GDP, and lower price level.
• B) lower investment, lower real GDP, and lower price level.
• C) higher investment, higher real GDP, and higher price level.
• D) higher interest rate and no effect on real GDP or the price level.

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Definitions:

Guilds

Medieval associations of artisans or merchants who oversaw the practice of their craft/trade in a particular town, often having considerable power.

Landscape Depiction

An artistic representation that focuses on the portrayal of natural scenery such as mountains, valleys, trees, rivers, and forests.

Konrad Witz

A Swiss painter of the 15th century known for his innovative use of landscape in religious panel paintings.

Lake Geneva

A large freshwater lake on the northern side of the Alps, shared between Switzerland and France, known for its picturesque beauty and the numerous cities and towns along its shores.