If the Fed Wishes to Reduce Aggregate Demand, It Will

question 1

Multiple Choice

If the Fed wishes to reduce aggregate demand, it will conduct an open market

• A) sale which will lower bond prices, lower interest rates, and stimulate investment.
• B) purchase which will lower bond prices, lower interest rates, and discourage investment.
• C) sale which will lower bond prices, raise interest rates, and discourage investment.
• D) purchase which will raise bond prices, lower interest rates, and stimulate investment.

---

Definitions:

Religious Precedent

involves decisions or actions based on previous religious or spiritual beliefs, events, or judgments that serve as an authoritative example for future situations.

Scientific Explanations

Scientific explanations are descriptions or clarifications provided by the scientific method to understand and hypothesize about phenomena in the natural world.

International Laws

A body of rules established by treaty or custom that governs the conduct of nations in their relations with each other.

Legal Argument

The reasoning and evidence presented by lawyers to a court in support of their case.