If the Federal Reserve Conducts Open Market Sales,the Money Supply

question 89

Multiple Choice

If the Federal Reserve conducts open market sales,the money supply ________,shifting the LM curve to the ________,everything else held constant.

• A)decreases;right
• B)decreases;left
• C)increases;right
• D)increases;left

---

Definitions:

Incubation Stage

A phase in the creative process where ideas mature and develop subconsciously before being realized or brought to fruition.

Convergent Thinking

A cognitive process where an individual focuses on finding a single, well-defined solution to a problem, limiting creativity by emphasizing standardization and correctness.

Escalation

The process by which conflict, intensity, or severity increases or is perceived to increase.

Need for Stimulation

A psychological drive for sensory or intellectual arousal and experiences that are varied, novel, complex, and intense.