If There Is an Autonomous Decrease in Spending (A Leftward

question 81

Multiple Choice

If there is an autonomous decrease in spending (a leftward shift in the aggregate demand curve) and the Fed wishes to hold real income constant,then the Fed would:

• A)decrease the money supply yielding a leftward shift in the aggregate demand curve.
• B)increase the money supply yielding a rightward shift in the aggregate demand curve.
• C)hold the money supply constant.
• D)none of the above.

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Definitions:

Conditioned Stimulus

An initially neutral stimulus that, through association with an unconditioned stimulus, comes to elicit a conditioned response over time.

Cinnamon Rolls

Sweet baked goods made from dough that is rolled around a filling of cinnamon, sugar, and sometimes raisins or nuts, then sliced and baked.

Smell

A sense that detects chemical substances in the environment, allowing organisms to perceive odors and fragrances through specialized sensory cells.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.