Figure 113 Alt Text for Figure 11

question 267

Multiple Choice

Figure 11.3 Alt text for Figure 11.3: In figure 11.3, a graph shows shift in money supply.
Long description for Figure 11.3: The x-axis is labelled, quantity of money, M (billions of dollars) , with values $90 and 95 marked.The y-axis is labelled, interest rate, i, with values 2 and 3% marked.3 lines are shown; MS1, MS2, and MD.Line MD begins in the top left corner and slopes down to the end of the x-axis.Line Money, supply MS1, is perpendicular to the x-axis, and begins from the value $90.Line MS2 is perpendicular to the x-axis, and begins from the value 95, to the right of line MS1.Line MD meets line MS1 at point ($90, 3%) , approximately 3 quarters of the way along both lines.Line MD meets line MS2 at point (95, 2) , almost half way along both lines.These points of intersection are connected to their respective coordinates on the y-axis using dotted lines.
-Refer to Figure 11.3.In the figure above, when the money supply shifts from MS₁ to MS₂, at the interest rate of 3 percent households and firms will

• A)buy Canada bonds.
• B)sell Canada bonds.
• C)neither buy nor sell Canada bonds.
• D)want to hold more money.
• E)increase their savings.

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Definitions:

Formal Forms

Structured, officially recognized or institutionalized patterns, shapes, or arrangements that adhere to established rules or standards.

Moral Panic

A widespread feeling of fear, often irrational, that some evil threatens the well-being of society, typically provoked by media coverage and leading to public calls for action.

Death Penalty

A legal punishment where a person is put to death by the state as a consequence for a crime deemed as particularly severe.

Gender Equality

The state in which access to rights or opportunities is unaffected by gender, allowing individuals of all genders to participate and benefit equally in all aspects of society.