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:

Investment

The allocation of resources, often money, in the expectation of generating an income or profit.

Seller's Assets

Properties or financial resources owned by a seller, which can include inventory, buildings, equipment, or intellectual property.

Liabilities

Liabilities represent the financial obligations a company owes to outside parties, such as debt and accounts payable.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, indicating the net value owned by the shareholders.