Use the Following to Answer Questions

question 10

Multiple Choice

Use the following to answer questions .
Exhibit: Aggregate Demand and Investment 2
-(Exhibit: Aggregate Demand and Investment 2) The economy is in short-run equilibrium. If policymakers want to use monetary policy to improve economic performance, they should

• A) buy bonds to reduce investment and aggregate demand.
• B) sell bonds to reduce investment and aggregate demand.
• C) buy bonds to reduce investment and short run aggregate supply.
• D) sell bonds to reduce investment and short run aggregate supply.

---

Definitions:

NOW Account

A type of bank account that offers the benefits of a savings account with the convenience of a checking account, allowing for interest to be earned on deposited funds.

Corporate Stock

Shares representing ownership in a corporation, giving shareholders a claim on part of the company's assets and earnings.

Credit Card

A financial instrument that allows the cardholder to borrow funds from a pre-approved limit to pay for goods and services.

Money Supply

The entire sum of monetary holdings accessible in an economy at a certain period.