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:

Recall

The ability to retrieve and access information or memories from the past.

Tangible Results

Outcomes or benefits of an action or process that can be seen, touched, or measured physically.

Factual Communication

The exchange of information that is based strictly on objective facts and evidence, without the influence of personal feelings or opinions.

Central Route

A pathway of persuasion described in the Elaboration Likelihood Model that involves thoughtful consideration of the arguments presented.