If the Fed Increases the Quantity of Money,then

question 253

Multiple Choice

If the Fed increases the quantity of money,then

• A)aggregate demand decreases and the AD curve shifts leftward.
• B)aggregate demand increases and the AD curve shifts rightward.
• C)the quantity of real GDP demanded decreases and there is a movement up along the AD curve.
• D)the quantity of real GDP demanded increases and there is a movement down along the AD curve.
• E)both the aggregate demand curve and the aggregate supply curve shift leftward.

---

Definitions:

Open-Ended Questions

Questions formulated to allow for a detailed, descriptive response rather than a simple yes or no.

Demographic Questions

Questions used in surveys or research that collect data about the characteristics of populations, such as age, gender, income level, and educational background.

Construct Validity

The extent to which a test measures what it claims, or purportedly aims, to be measuring.

Independent Variable

The factor in a study that is deliberately altered by the investigator to observe its effect on the outcome variable.