The Central Bank of Cobra Sells Securities in an Open

question 172

Multiple Choice

The central bank of Cobra sells securities in an open market operation. In the short run, aggregate demand ________, real GDP ________, and the price level ________.

• A) does not change; increases; falls
• B) decreases; decreases; falls
• C) increases; increases; rises
• D) does not change; decreases; rises

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Definitions:

Principal

A principal can refer to the amount of money being borrowed or the party managing a group, depending on the context.

Negligently Left

Describes a situation where an individual or entity fails to take proper care in doing something, resulting in something being left behind or unattended in a manner that could cause harm or loss.

Mop And Bucket

A basic cleaning tool consisting of a mop for washing and a bucket for holding cleaning water or solutions, commonly used for floor cleaning.

Liability

A legal responsibility or obligation to compensate someone else for harm or damage that has been caused.