Which of the Following Statements Is True

question 6

Multiple Choice

Which of the following statements is true?

• A)If the Fed wants to decrease money supply, it sells government securities.
• B)If the Fed wants to increase money supply, it sells government securities.
• C)If the Fed wants to decrease money demand, it sells government securities.
• D)If the Fed wants to increase money demand, it sells government securities.

---

Definitions:

Tea

An aromatic beverage commonly prepared by pouring hot or boiling water over cured or fresh leaves of the Camellia sinensis plant.

Wage Rate

The amount of compensation or payment received by an employee per unit of time or piece of work completed.

Pizza Makers

Individuals or machines specifically tasked with preparing and cooking pizzas.

Increase in Supply

Occurs when there is a rise in the quantity of a good or service available in the market, typically resulting from lower production costs or an improvement in technology.