Using the liquidity-preference model, when the Federal Reserve decreases the money supply,
a. the equilibrium interest rate increases.
b. the aggregate-demand curve shifts to the right.
c. the quantity of goods and services demanded is unchanged for a given price level.
d. the short-run aggregate-supply curve shifts to the left.
a
Economics
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When the Fed engages in an open market purchase, the money supply ________ and the nominal interest rate ________.
A. increases; increases B. decreases; increases D decreases; decreases C. increases; decreases
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Wikipedia is an example of a:
A. a common resource. B. an artificially scarce resource. C. a private good. D. a public good.
Economics