When the supply of money is vertical, changes in money demand will not change the equilibrium quantity of money in existence

When the money market is drawn with the value of money on the vertical axis, if the Federal Reserve sells bonds, then the money supply curve

a. shifts right, causing the price level to rise. b. shifts right, causing the price level to fall. c. shifts left, causing the price level to rise. d. shifts left, causing the price level to fall.

U.S. prices are considered stable only when the Consumer Price Index

a. falls. b. moves 10 percent or less in a year’s time. c. moves 2 percent or less in a year’s time. d. remains unchanged.