If Uncertainty Causes People to Increase Their Demand for Cash

question 83

Multiple Choice

If uncertainty causes people to increase their demand for cash at the same time that the Fed raises money supply growth,then the Fed's action will:

• A) shift the AD curve further to the right.
• B) shift the AD curve less to the right.
• C) shift the AD curve further to the left.
• D) more effectively move the economy back to the old equilibrium point.

---

Definitions:

Material Purchases

The total cost of raw materials acquired for use in the production process.

Est. Cost of Goods Sold

An estimated figure representing the cost directly associated with the production of the goods sold by a company.

Selling Price

The amount of money a seller charges for a product or service.

Credit Sales

Transactions where goods or services are sold and payment is delayed, typically recorded as accounts receivable.