When the Fed Decreases the Money Supply

question 143

Multiple Choice

When the Fed decreases the money supply:

• A)aggregate demand and aggregate supply both increase.
• B)aggregate demand increases,which leads to movement along the short-run aggregate supply curve.
• C)aggregate demand decreases,which leads to movement along the short-run aggregate supply curve.
• D)aggregate supply increases,which leads to movement along the aggregate demand curve.
• E)aggregate supply decreases,which leads to movement along the aggregate demand curve.

---

Definitions:

Defective Candy Bars

Candy bars that do not meet the production quality standards due to flaws.

Sample Size

The total number of instances or replications incorporated in a statistical sampling.

Population Proportion

The fraction or percentage of the population that exhibits a specific attribute or characteristic.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, reflecting how the statistic varies from sample to sample.