Use the Following to Answer Questions

question 10

Multiple Choice

Use the following to answer questions .
Exhibit: Aggregate Demand and Investment 2
-(Exhibit: Aggregate Demand and Investment 2) The economy is in short-run equilibrium. If policymakers want to use monetary policy to improve economic performance, they should

• A) buy bonds to reduce investment and aggregate demand.
• B) sell bonds to reduce investment and aggregate demand.
• C) buy bonds to reduce investment and short run aggregate supply.
• D) sell bonds to reduce investment and short run aggregate supply.

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Definitions:

Sight Vocabulary

Words that are immediately recognized on the basis of familiarity with their overall shapes, rather than decoded.

Rote Learning

A memorization technique based on repetition, often without an understanding of the reasoning or relationships behind the information.

Decode New Words

The process of interpreting and understanding unfamiliar words by using knowledge of phonics, context clues, and morphemes.

Grammatical Abilities

The capability to use and understand the rules and structures of language to communicate effectively.