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

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Definitions:

Proper Authorities

Official organizations or individuals vested with the legal power to enforce laws, regulations, or carry out government functions.

Agitated

A state of increased restlessness, nervousness, or irritability, often resulting from stress or a specific psychiatric condition.

Positive Variance

A term used in accounting and finance indicating that actual revenues are higher than forecasted or budgeted revenues, or expenses are lower than expected.

Negative Variance

A situation where actual results are worse than expected or budgeted results, often used in financial or operational contexts.