If the Fed Fears Inflation, It ________ by ________ Government

question 30

Multiple Choice

If the Fed fears inflation, it ________ by ________ government securities.

• A) increases aggregate demand; selling
• B) increases aggregate supply; buying
• C) decreases aggregate demand; selling
• D) decreases aggregate supply; buying
• E) decreases aggregate supply; selling

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Definitions:

Coercive Power

A form of authority that relies on the threat of force or punishment to compel obedience.

Reward Power

is a form of influence where an individual has control over the distribution of rewards, motivating others to follow directions or achieve goals.

Referent Power

The influence one has over others because they respect, admire, or like the individual.

Organizational Learning

The process by which organizations acquire, improve, and manage knowledge to better adapt and succeed.