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.

---

Definitions:

Marginal Cost

The rise in overall manufacturing expenses resulting from the creation of an extra unit.

Quantity of Output

The amount of goods or services produced by a company, sector, or economy within a specific period.

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the average cost per unit of output.

Total Cost

The complete cost of production, including both fixed and variable costs, incurred by a firm in producing a specific amount of output.