Use the Following to Answer Questions

question 111

Multiple Choice

Use the following to answer questions .
Exhibit: Economic Adjustments
-(Exhibit: Economic Adjustments) If the economy is at point b, the Federal Reserve can close the output gap by selling 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:

Public Relations

The professional practice of managing and guiding perceptions of individuals, organizations, or products in the public eye through media and communication strategies.

Public Diplomacy

The practice of promoting the interests of a nation through interaction and engagement with foreign publics.

Corporate Citizens

Companies that are recognized as having legal rights and responsibilities similar to those of an individual, including ethical and social obligations towards society.

U.S. Businesses

Companies and enterprises operating within the United States, contributing to its economy and subject to its regulations and market conditions.