In the IS-LM Model When the Federal Reserve Decreases the Money

question 37

Multiple Choice

In the IS-LM model when the Federal Reserve decreases the money supply, people ______ bonds and the interest rate ______, leading to a(n) ______ in investment and income.

• A) buy; rises; increase
• B) sell; falls; decrease
• C) sell; rises; decrease
• D) buy; rises; decrease

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Definitions:

Informational Roles

The expectations or duties related to the collection, processing, and disseminating of information by an individual within their organizational position.

Mintzberg

A management theorist known for his work on organizational structures, strategy, and management roles.

Figurehead

A person who holds a nominal position or title but may not have actual power or responsibilities, often symbolic in nature.

Commitment

A dedication to a cause, activity, or job; wholehearted devotion.