When the Money Market Is Drawn with the Value of Money

question 186

Multiple Choice

When the money market is drawn with the value of money on the vertical axis,if the Federal Reserve buys bonds,then the money supply curve

• A)shifts rightward,causing the value of money measured in terms of goods and services to rise.
• B)shifts rightward,causing the value of money measured in terms of goods and services to fall.
• C)shifts leftward,causing the value of money measured in terms of goods and services to rise.
• D)shifts leftward,causing the value of money measured in terms of goods and services to fall.

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Definitions:

Number of Protons

A fundamental characteristic of an element that defines its identity in the periodic table, equal to the atomic number.

Electron Charge

A fundamental property of the electron indicating the amount of negative electrical charge it carries.

Atom Nucleus

The central core of an atom, containing protons and neutrons, around which electrons orbit.

AC Sinewave

Represents alternating current electricity in a waveform that alternates in a sinusoidal manner, typical of household electrical supply.