If the Fed Decreases Money Supply

question 4

Multiple Choice

If the Fed decreases money supply,

• A) the IS curve will shift to the right.
• B) the IS curve will shift to the left.
• C) the LM curve will shift to the right.
• D) the LM curve will shift to the left.

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Definitions:

Useful Life

The estimated period that an asset is expected to be functional and contribute to a company's operations.

Operating Costs

The expenses related to the normal day-to-day running of a business, including rent, salaries, and utilities.

Traceable Fixed Expense

Fixed expenses specifically attributable to a particular section of a business or an operation.

Price Reduction

A strategy involving the lowering of the selling price of products or services, typically to attract more customers or respond to market competition.