Ask Question
19 October, 05:37

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

+2
Answers (1)
  1. 19 October, 09:37
    0
    The correct answer is: shifts rightward, causing the price level to rise.

    Explanation:

    The money supply curve portraits the money supplied in the market at a specific interest rate. The money supply is increased by the central bank by purchasing bonds or other assets - in this case, the Federal Reserve - causing the money supply curve more to the right which at the same time lowers the interest rate.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “When the money market is drawn with the value of money on the vertical axis, if the Federal Reserve buys bonds, then the money supply curve. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers