Suppose There Is a Decrease in Aggregate Demand

question 33

Multiple Choice

Suppose there is a decrease in aggregate demand.If the Fed wants to stabilize output it could

• A)buy bonds.These purchases also move the price level closer to its original level.
• B)buy bonds.However these purchases move the price level farther from its original level.
• C)sell bonds.These sales also move the price level closer to its original level.
• D)sell bonds.However these sales move the price level farther from its original level.

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Definitions:

Psychological Harm

Damage inflicted on an individual’s mental health or well-being, including emotional distress, anxiety, or trauma.

Informed Decisions

Decisions made based on a thorough understanding of all relevant information, implications, and consequences.

NASW Code

The Code of Ethics of the National Association of Social Workers, providing guidance on the standards and ethical principles that govern the conduct of social workers.

Social Justice

The fair and just relation between the individual and society, measured by the distribution of wealth, opportunities for personal activity, and social privileges.