Which of the Following Is Correct

question 191

Multiple Choice

Which of the following is correct?

• A)If the Fed purchases bonds in the open market,then the money supply curve shifts right.A change in the price level does not shift the money supply curve.
• B)If the Fed sells bonds in the open market,then the money supply curve shifts right.A change in the price level does not shift the money supply curve.
• C)If the Fed purchases bonds,then the money supply curve shifts right.An increase in the price level shifts the money supply curve right.
• D)If the Fed sells bonds,then the money supply curve shifts right.A decrease in the price level shifts the money supply curve right.

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Definitions:

Community of Practice

A group of people who share a craft, profession, or interest and engage in collective learning and knowledge sharing around that focus.

Shared Vocabulary

A set of words and terms commonly known and used within a particular group, facilitating effective communication.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, attitudes, and preferences through study, experience, or teaching.

Mental Models

are internal representations of how things work in the external world, shaping how individuals interpret events and make decisions.