Which of These Changes Is Likely to Follow When the Fed

question 86

Multiple Choice

Which of these changes is likely to follow when the Fed purchases U.S.government securities?

• A)Aggregate demand will decrease.
• B)The demand for financial securities will increase.
• C)Rate of interest will increase.
• D)Planned investment spending will increase.
• E)Real GDP will decrease.

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Definitions:

Position Power

The authority and influence a person possesses within an organization due to the rank or role they hold.

Influence Tactics

Strategies or actions designed to change the attitude or behavior of others in a particular direction.

Communication Policy

Guidelines and practices that govern how communication is conducted within an organization, including methods, privacy, and protocols.

Exchanging Favors

The act of performing tasks or services for others with the expectation that they will return similar acts of kindness or assistance in the future.