If the Fed Wants to Increase AD,it Should Do Which

question 114

Multiple Choice

If the Fed wants to increase AD,it should do which of the following?

• A)Conduct open market purchases.
• B)Raise the discount rate.
• C)Raise the required reserve ratio.
• D)Lower capital gains tax rates.

---

Definitions:

Positive Punishment

A behavior modification technique that involves adding an unpleasant consequence after an undesired behavior to decrease its occurrence.

Punishing Stimuli

Any stimulus that decreases the likelihood of the behavior that it follows, often used in the context of behavioral psychology and conditioning.

Aggressiveness

A behavior characterized by boldness or assertiveness, with a tendency to confront or attack.

Operant Conditioning

A method in which learning occurs by altering the level of a behavior through the application of reinforcers or punishments.