If the Fed Conducts an Open Market Sale of Bonds,which

question 92

Multiple Choice

If the Fed conducts an open market sale of bonds,which of the following will happen?

• A) The interest rate will decrease,the aggregate expenditure line will shift upward and the aggregate demand curve will shift rightward
• B) The interest rate will decrease,the aggregate expenditure line will shift downward and the aggregate demand curve will shift rightward
• C) The interest rate will increase,the aggregate expenditure line will shift downward and the aggregate demand curve will shift leftward
• D) The interest rate will decrease,the aggregate expenditure line will shift upward and the aggregate demand curve will shift leftward
• E) The interest rate will increase,the aggregate expenditure line will shift downward and the aggregate demand curve will shift rightward.

---

Definitions:

Wave-cut Notches

Erosional features formed at the base of cliffs by the action of ocean waves.

Coral Reefs

diverse underwater ecosystems held together by calcium carbonate structures secreted by corals.

Seawall

A man-made structure built along coasts to prevent erosion and flooding from the sea, often made of concrete, rocks, or other durable materials.

Jetty

An engineering structure built from the shore into a body of water to redirect current or tide, for example, to protect a harbor.