A sale of U.S. government securities by the Fed causes a(n)
A) expansion of the money supply equal to the amount of the securities sold.
B) contraction of the money supply equal to the amount of the securities sold.
C) expansion of the money supply of more than the amount of the securities sold.
D) contraction of the money supply of more than the amount of the securities sold.
D)
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Changes in the output of a perfectly competitive firm, without any change in the price of the product, will change the firm's
a. total revenue. b. marginal revenue. c. average revenue. d. All of the above are correct.
According to liquidity preference theory, a decrease in the price level shifts the
a. money demand curve rightward, so the interest rate increases. b. money demand curve rightward, so the interest rate decreases. c. money demand curve leftward, so the interest rate decreases. d. money demand curve leftward, so the interest rate increases.