Macro Unit 3

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On the graph, MS represents the money supply and MD represents the money demanded. The usual quantities are measured along the axes.
Which of the following events could explain a shift in the money supply curve from MS1 to MS2 in figure A?

Answer:
a)  An increase in the value of money.
b)  A decrease in the price level.
c)  An open-market purchase of bonds by the Federal Reserve.
d)  An open-market sale of bonds by the Federal Reserve.
e)  A tax cut by the federal government.
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Macro Unit 3
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Free Quiz Question From Macro Unit 3
Question: On the graph, MS represents the money supply and MD represents the money demanded. The usual quantities are measured along the axes.Which of the following events could explain a shift in the money supply curve from MS1 to MS2 in figure A?
Answer:
An increase in the value of money.
A decrease in the price level.
An open-market purchase of bonds by the Federal Reserve.
An open-market sale of bonds by the Federal Reserve.
A tax cut by the federal government.