Figure 24-2

question 135

Multiple Choice

Figure 24-2.On the left-hand graph,MS represents the supply of money and MD represents the demand for money; on the right-hand graph,AD represents aggregate demand.The usual quantities are measured along the axes of both graphs.

-Refer to Figure 24-2.If the money-supply curve MS on the left-hand graph were to shift to the right,this would

• A) represent an action taken by the Federal Reserve.
• B) shift the AD curve to the left.
• C) create,until the interest rate adjusted,an excess demand for money at the interest rate that equilibrated the money market before the shift.
• D) All of the above are correct.

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Definitions:

Fertilization

The process of combining male and female gametes to form a zygote, initiating the development of a new individual.

Meiosis

A type of cell division that reduces the chromosome number by half, resulting in the production of gametes or spores in sexually reproducing organisms.

Mitosis

A process of cell division in which a single cell divides to produce two identical daughter cells, each with the same number of chromosomes as the parent cell.

Fusion

Fusion is the process or result of joining two or more things together to form a single entity.