Figure 13-3 -In the Figure Above, Suppose That the Fed Maintains a Fed

question 16

Multiple Choice

Figure 13-3
-In the figure above, suppose that the Fed maintains a fixed real money supply and that commodity demand is also fixed. The range of shifts in the LM curve, LM1 to LM2 can then only be explained by

• A) changes in the velocity of money.
• B) changes in the price level.
• C) changes in the demand for money.
• D) A and C.

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The amount of money remaining from revenues after subtracting all costs, expenses, and taxes, indicating the profit earned.

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Payments made by a corporation to its shareholder members, distributed from the company's profits.

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A written agreement where one party promises to pay another a definite sum of money at a specified future date or on demand.

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Assets likely to be converted into cash within a year, such as inventory, accounts receivable, and cash and cash equivalents.