If Money Demand Shifted to the Right and the Federal

question 31

Multiple Choice

If money demand shifted to the right and the Federal Reserve desired to return the interest rate to its original value,it could

• A)buy bonds to increase the money supply.
• B)buy bonds to decrease the money supply.
• C)sell bonds to increase the money supply.
• D)sell bonds to decrease the money supply.

---

Definitions:

Adverse Social Impacts

Negative effects on society that may result from certain actions or policies, such as increased inequality or damage to community cohesion.

Discretionary Responsibilities

Obligations that an individual or organization chooses to undertake voluntarily, beyond what is legally or contractually required.

Demand Legitimacy

The validity and legitimacy of a stakeholder’s interest in the organization.

Stakeholder's Concerns

The issues or interests that stakeholders (individuals or groups affected by or with an interest in a company's operations) have in the actions and performance of an organization.