If the Economy Is at Potential GDP and the Fed

question 101

Multiple Choice

If the economy is at potential GDP and the Fed makes an open market purchase of government securities, in the short run bank reserves__________ , the nominal interest rate__________ , and the aggregate demand curve __________.

• A) increase; falls; shifts rightward
• B) increase; rises; shifts rightward
• C) stay constant; does not change; does not shift
• D) decrease; falls; shifts rightward

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Definitions:

Input Module Circuit

A part of PLC systems designed to read and process incoming signals from various sensors before feeding them into the control logic.

Voltmeter

An instrument for measuring electric potential differences in volts between two points in an electric circuit.

24 VDC

A reference to a 24-volt direct current power supply, commonly used in industrial control systems and electronics.

Commissioning

The process of verifying and bringing systems, especially in building or industrial contexts, into operational status following installation to ensure they function according to design specifications.