Use the Following to Answer Questions

question 237

Multiple Choice

Use the following to answer questions:
Figure: The Money Supply and Aggregate Demand
-(Figure: The Money Supply and Aggregate Demand) Refer to Figure: The Money Supply and Aggregate Demand. If the Federal Reserve intended to encourage investment and expand the economy, it would _____ Treasury bills, _____ the money supply, and _____ interest rates. This is shown in panel _____.

• A) buy; increase; lower; (a)
• B) sell; increase; lower; (b)
• C) buy; decrease; lower; (a)
• D) buy; increase; raise; (a)

---

Definitions:

External Factors

Elements outside an organization or system that can affect its performance, including economic conditions, legislation, and social trends.

Perceptual Selection

The process by which individuals filter and interpret sensory information, focusing on certain aspects while ignoring others, based on expectations and preferences.

Intensity

The degree of strength, force, or concentration applied in a specific activity or situation.

Selective Screening

The cognitive process through which people filter and focus on important informational cues while ignoring other less relevant data.