Figure 11-4

question 32

Multiple Choice

Figure 11-4
-Refer to Figure 11-4. Which of the following actions by the Fed could have caused the movement from AD₁ to AD₂ in Panel (a) ?

• A) selling government bonds in the open market
• B) buying government bonds in the open market
• C) increasing the discount rate
• D) increasing the federal funds rate

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Definitions:

Moving Backward

The process of going in a direction opposite to the one that is considered forward or advancing.

Ventricular Systole

The phase of the cardiac cycle during which the ventricles contract, pumping blood out of the heart into the arteries.

Pulmonary Artery

The artery that carries deoxygenated blood from the right ventricle of the heart to the lungs for oxygenation.

Aorta

The largest and main systemic artery of the vertebrate body; arises from the left ventricle and branches to distribute blood to all parts of the body except the lungs.