If the Fed Increases the Quantity of Money,then

question 253

Multiple Choice

If the Fed increases the quantity of money,then

• A)aggregate demand decreases and the AD curve shifts leftward.
• B)aggregate demand increases and the AD curve shifts rightward.
• C)the quantity of real GDP demanded decreases and there is a movement up along the AD curve.
• D)the quantity of real GDP demanded increases and there is a movement down along the AD curve.
• E)both the aggregate demand curve and the aggregate supply curve shift leftward.

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Definitions:

Labor-Intensive

A process or industry that requires a large amount of labor to produce its goods or services, often necessitating significant workforce employment.

Textile Products

Goods produced by weaving, knitting, or felting fibers, including clothing, towels, and bedding.

North American Free Trade Agreement

A trilateral trade block agreement made by Canada, Mexico, and the United States to reduce trading costs and increase business investments.

Infant Industries

Industries in their early stage of development, which may be protected by the government from international competition to allow them to grow.