Exhibit 20-4  Aggregate Demand and Supply Model in Exhibit 20-4

question 22

Multiple Choice

Exhibit 20-4  Aggregate demand and supply model In Exhibit 20-4, which one of the following actions could the Fed use to shift the AD curve from AD₁ to AD₂?

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

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Definitions:

Syndicate

A group of individuals or organizations combined to promote a common interest.

Contracts Fraud

Contracts fraud involves the intentional deception or misrepresentation made by a party in a contract to gain a financial advantage or to harm the other party, often relating to the falsification or concealment of information.

Business Organization

The structure and framework within which an enterprise operates, detailing the roles, relationships, and responsibilities of its entities.

Pool Their Resources

To combine assets, funds, or talents of a group of people for a common purpose or to achieve a common goal.