If the Stock Market Booms, Then

question 179

Multiple Choice

If the stock market booms, then

• A)aggregate demand increases, which the Fed could offset by purchasing bonds.
• B)aggregate supply increases, which the Fed could offset by selling bonds.
• C)aggregate demand increases, which the Fed could offset by selling bonds.
• D)aggregate supply increases, which the Fed could offset by purchasing bonds.

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Definitions:

Broca's Aphasia

A type of aphasia characterized by difficulty in producing speech but with relatively preserved comprehension.

Wernicke's Aphasia

A neurological disorder characterized by impaired comprehension and production of language, due to damage to the Wernicke's area of the brain.

Circumlocution

The use of many words where fewer would suffice, often to be vague or evasive, or to elaborate unnecessarily.

Blocking

In psychology, a process whereby a person's thoughts or memories are obstructed or interrupted.