Which Shift Should Occur If the Fed Raises the Discount

question 86

Multiple Choice

Which shift should occur if the Fed raises the discount rate?

• A)The investment demand curve should shift rightward.
• B)The aggregate supply curve should shift rightward.
• C)The aggregate demand curve should shift leftward.
• D)The aggregate demand curve should shift rightward.

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Definitions:

Other-Race Effect

A cognitive bias where individuals are more likely to recognize and differentiate faces of their own racial or ethnic group than those of other groups.

Religious Beliefs

Personal or shared beliefs regarding spiritual faith, worship practices, and the divine, which often guide moral judgement and actions.

Discrimination

Bias or inequitable actions against varied categories of individuals, mainly due to their race, age, or sexual orientation.

Ingroups

Social groups to which a person psychologically identifies as being a member.