Which of the Following Monetary Policies Raises Aggregate Demand and Output

question 1

Multiple Choice

Which of the following monetary policies raises aggregate demand and output?

• A)An open market sale of government securities
• B)An increase in the federal funds rate
• C)An increase in the discount rate
• D)A cut in the reserve requirement

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Definitions:

Unconcentrated

Refers to a market or industry where no single entity has a large market share, leading to a high level of competition.

Highly Concentrated

A market condition where a small number of firms hold a large market share.

Monopolists

Monopolists are individuals or entities that have exclusive control over the production and sale of a particular good or service, allowing them to manipulate the market price and output.

Cartel Members

Individuals or entities part of an agreement among competing firms to control prices, limit output, or divide markets, often to maximize collective profits.