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

question 181

Multiple Choice

If the Fed conducts an open market purchase 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 leftward.
• B) The interest rate will increase,the aggregate expenditure line will shift upward,and the aggregate demand curve will shift rightward.
• C) The interest rate will decrease,the aggregate expenditure line will shift upward,and the aggregate demand curve will shift rightward.
• D) The interest rate will decrease,the aggregate expenditure line will shift downward,and the aggregate demand curve will shift rightward.
• E) The interest rate will increase,the aggregate expenditure line will shift downward,and the aggregate demand curve will shift leftward.

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Definitions:

Technological Innovation

The process of developing and applying new technologies or improvements to existing technologies to solve problems or enhance capabilities.

Research Efforts

Systematic investigations with the aim of establishing facts and reaching new conclusions.

Technological Determinism

The theory that technology is the principal factor driving societal changes and shaping human history.

Research Scientists

Professionals engaged in systematic investigation and study in various fields of science to acquire new knowledge and understanding.