If the Fed reduces the supply of money, the
A. AS curve shifts outward.
B. AS curve shifts inward.
C. AD curve shifts outward.
D. AD curve shifts inward.
Ans: D. AD curve shifts inward.
You might also like to view...
Use the following figure to answer the next question. 
Total fixed cost at output level Q2 is measured by the vertical distance
A. 0C. B. DE. C. AD. D. CD.
Explain the total revenue test
What will be an ideal response?
Other things remaining the same, if a large part of the population decided against having soda for health reasons, there would be a(n):
a. increase in the quantity of soda supplied. b. increase in the quantity supplied of complements like fries and burgers. c. decrease in the price of soda. d. rightward shift of the demand curve for soda. e. decrease in the quantity demanded of substitutes like mineral water.
The real, effective exchange rate is:
a. The same as the nominal, effective exchange rate. b. The value of one currency in terms of another currency. c. The nominal, bilateral exchange rate adjusted for the international price levels of the two countries. d. The weighted-average value of a currency relative to many foreign currencies. e. The nominal, effective exchange rate adjusted for a nation's price level relative to many foreign countries' prices.