Which of the Following Is Correct

question 191

Multiple Choice

Which of the following is correct?

• A)If the Fed purchases bonds in the open market,then the money supply curve shifts right.A change in the price level does not shift the money supply curve.
• B)If the Fed sells bonds in the open market,then the money supply curve shifts right.A change in the price level does not shift the money supply curve.
• C)If the Fed purchases bonds,then the money supply curve shifts right.An increase in the price level shifts the money supply curve right.
• D)If the Fed sells bonds,then the money supply curve shifts right.A decrease in the price level shifts the money supply curve right.

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Definitions:

Truck Purchase

The acquisition of a truck, which is a capital investment and may be classified as a fixed asset on the balance sheet.

Office Supplies

Items and materials used in offices for daily work activities, including paper, pens, and office equipment.

Office Equipment

Fixed assets that are used in an office environment for the purpose of performing business operations, including computers, printers, and furniture.

Journal Entry

A record in accounting that represents a transaction in the ledger.