The Fed's Actions to Fight an Inflation Shift the

question 155

Multiple Choice

The Fed's actions to fight an inflation shift the

• A) aggregate demand curve rightward.
• B) aggregate demand curve leftward.
• C) long-run aggregate supply curve rightward.
• D) long-run aggregate supply curve leftward.

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Definitions:

CAPM

Capital Asset Pricing Model, a formula used to determine the expected return on an investment based on its risk relative to the market.

APT Model

Arbitrage Pricing Theory Model; a financial theory that estimates the returns on assets based on their exposure to various risk factors.

One Factor

In finance, refers to models or analyses that consider only a single variable or risk factor in their calculations.

CAPM

The Capital Asset Pricing Model, a model that describes the relationship between systematic risk and expected return for assets, particularly stocks.