Figure 34-2

question 111

Multiple Choice

Figure 34-2.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.
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-Refer to Figure 34-2.If the money-supply curve MS on the left-hand graph were to shift to the left,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:

Appointed Members

Individuals chosen or designated to serve on boards, committees, or other bodies based on specific criteria or qualifications rather than elected by a general vote.

Fund-Raising Efforts

Activities or campaigns undertaken to gather financial support for a cause, organization, or project.

Policy

A principle or set of guidelines formulated or adopted by an organization, government, or individual to guide decisions and achieve rational outcomes.

Ground Rules

Basic guidelines or agreed-upon principles that govern the conduct of activities, discussions, or work within a group or organization.