Asale of securities by the fed causes
a. an expansion of the money supply equal to the amount of the securities sold.
b. a multiple expansion of the money supply greater than the amount of the securities sold.
c. a contraction of the money supply equal to the amount of the securities sold.
d. a multiple contraction of the money supply greater than the amount of the securities sold.

D) A multiple contraction of the money supply greater than the amount of the securities sold.

Explanation:

When the fed sells securities in the open market, it obtains dollars, and keeps those dollars from circulating, in other words, in reduces the money supply.

The contraction in the money supply is greater than the amount of securities sold because of the money multiplier.

When the fed sells securities, it reduces the monetary base, which is equal to:

B = C + D

Where:

B = Monetary base

C = Cash in hands of the public

D = Demand deposits

And the money supply is equal to:

M = m x B

Where:

M = money supply

m = money multiplier

B = Monetary base

Because of the money multiplier, any contraction or expansion in the monetary base has a multiplying effect in the money supply.

answer; // there are violations that can cause injuries or death;

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know