Use the Following to Answer Questions

question 247

Multiple Choice

Use the following to answer questions:
-(Figure: Short-Run Determination of the Interest Rate) Refer to Figure: Short-Run Determination of the Interest Rate.If the money supply is at MS₂ and the central bank sells Treasury bills,then the resulting short-run shift in the supply of savings (loanable funds) may be represented by a shift of the:

• A) money supply curve to MS₁,which lowers the interest rate.
• B) supply of loanable funds from S₁ to S₂,which lowers the interest rate.
• C) supply of loanable funds from S₂ to S₁,which raises the interest rate.
• D) interest rate from i₁ to i₂.

---

Definitions:

Sales Volume

The quantity of products or services sold by a business within a specific period, often used as an indicator of business performance.

Stock Options

A form of compensation that gives employees the right to purchase company stock at a predetermined price at a future date, often used as a retention strategy.

Nonexecutive Personnel

Employees within an organization who do not hold executive or managerial positions, often involved in day-to-day operations.

Media Scandals

Events or actions that receive widespread public disapproval and are extensively covered and criticized in the media.