Use the Following to Answer Questions

question 69

Multiple Choice

Use the following to answer questions .
Exhibit: Economic Adjustments
-(Exhibit: Economic Adjustments) If the economy is at point c, the Federal Reserve can close the output gap by buying bonds. In the bond market,

• A) the supply curve shifts right, leading to a decrease in bond prices and an increase in interest rates.
• B) the demand curve shifts right, leading to an increase in bond prices and a decrease in interest rates.
• C) the supply curve shifts left, leading to an increase in bond prices and an increase in interest rates.
• D) the demand curve shifts left, leading to a decrease in bond prices and an increase in interest rates.

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Definitions:

Mediation

A form of dispute resolution where a neutral third party assists the parties in reaching a mutually acceptable agreement.

Legal Audits

The process of reviewing and verifying the legal compliance and risks of a company or organization.

Technology

The application of scientific knowledge for practical purposes, especially in industry and in everyday life.

Business Cycle-Sensitive

Describes entities or metrics that are particularly influenced by the cyclical ups and downs in the economic activity of a market or economy.