If Aggregate Demand Shifts Because of a Wave of Pessimism

question 24

Multiple Choice

If aggregate demand shifts because of a wave of pessimism about stock prices,those who favor a policy that "leans against the wind" would advocate the

• A)Federal Reserve increase the money supply or the government increase taxes.
• B)Federal Reserve increase the money supply or the government decrease taxes.
• C)Federal Reserve decrease the money supply or the government increase taxes.
• D)Federal Reserve decrease the money supply or the government decrease taxes.

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Definitions:

Bridging

A conflict resolution technique that involves finding a new option or idea that all parties can agree with, thereby bridging their differences.

Invent

To create or design something that has not existed before; to innovate.

Assessing Interests

The process of understanding the underlying needs, desires, and motivations behind parties' positions in a negotiation or conflict.

Relational Issues

Problems arising within interpersonal relationships that affect the dynamics between individuals.