If the Fed Buys Bonds in the Open Market,which of the Following

question 149

Multiple Choice

If the Fed buys bonds in the open market,which of the following will likely NOT happen?

• A) Investment spending increases.
• B) Short-term interest rates increase.
• C) Aggregate demand increases.
• D) The monetary base increases.

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Definitions:

Partner

An individual or entity who shares ownership in a business venture and is liable for its operations and financial outcomes.

Written Agreement

A legally binding contract that has been documented in writing between two or more parties.

Partnership Agreement

A legal document that outlines the rights, responsibilities, and proportions of ownership among partners in a partnership.

Risks

The potential for losing something of value, or the exposure to danger, harm, or loss.