Exhibit 16-4 Aggregate Demand and Supply Model

question 102

Multiple Choice

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 AD₃ to AD₂?

• A) Lower the legal reserve requirement.
• B) Lower the discount rate.
• C) Lower the federal funds rate.
• D) Sell government securities.

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Definitions:

Muscle Contraction

The process of muscle fibers shortening or tensing, leading to movement or the exertion of force.

Constant Force

A force that remains the same in magnitude and direction over a period of time when acting on an object.

Static Training

A form of exercise involving muscle contractions without visible movement in the angle of the joint, focusing on strength.

Isometric Training

Physical training that involves the static contraction of a muscle without any visible movement in the angle of the joint.