Use the Figure Below to Answer the Following Question(s)

question 110

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 14-2

-If the Fed anticipates that the conditions illustrated by AD₂ and SRAS in Figure 14-2 will be present in the near future,it should

• A)decrease the discount rate.
• B)reduce reserve requirements.
• C)sell U.S.treasury bonds on the open market.
• D)buy U.S.treasury bonds on the open market.

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Definitions:

Direct Marketing

A form of advertising in which companies provide physical marketing materials to consumers to communicate information about a product or service.

Discussion

An exchange of ideas or opinions among individuals or groups, often aiming to reach a better understanding or solution to a particular issue.

Personal Selling

A direct marketing approach where sales representatives interact one-on-one with potential customers to pitch products or services.

Promotional Mix

The combination of marketing tools and strategies a business uses to communicate its products or services to its target market, such as advertising, sales promotion, public relations, and personal selling.