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Exhibit 16-4 Aggregate Demand and Supply Model in Exhibit

question 68

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Exhibit 16-4 Aggregate demand and supply model Exhibit 16-4 Aggregate demand and supply model   In Exhibit 16-4, which one of the following actions could the Fed use to shift the AD curve from AD<sub>3</sub> to AD<sub>2</sub>? A) Lower the discount rate. B) Lower the federal funds rate C) Raise the federal funds rate. D) Raise the legal reserve requirement E) Buy government securities. In Exhibit 16-4, which one of the following actions could the Fed use to shift the AD curve from AD3 to AD2?


Definitions:

Historical Record

Documentation or archives of past events, transactions, or values, often used for reference.

Small Stocks

Shares of companies with relatively small market capitalization.

Canadian Treasury Bills

Short-term government securities issued by the Canadian government, featuring a maturity of less than one year and sold at a discount.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, often associated with the level of risk involved.

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