Refer to Figure 15

question 7

Multiple Choice

Refer to Figure 15.6.Which of the following Fed actions is most likely to decrease the aggregate demand curve from AD₂ to AD₁?

• A)Buying bonds in the open market.
• B)Raising the federal funds rate.
• C)Lowering the discount rate.
• D)Decreasing the reserve requirement.

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Definitions:

Grouped Frequency Distribution

A representation of data that shows the number of observations within a given interval, helping in understanding the distribution of data points.

Equal Size

A condition often desired in statistical sampling or experimental design where all groups or samples have the same number of observations.

Arbitrarily Intervals

Intervals or ranges that are determined without a specific rule, often chosen based on convenience or subjective judgement.

Cumulative Percent

A measure that represents the total percentage that is accumulated at each data point or within each bin when data is sorted in ascending order.