Which of the Following Will Occur If the Fed Raises

question 6

Multiple Choice

Which of the following will occur if the Fed raises the reserve requirement,ceteris paribus?

• A) The aggregate supply curve should shift leftward.
• B) The aggregate supply curve should shift rightward.
• C) The aggregate demand curve should shift leftward.
• D) The aggregate demand curve should shift rightward.

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Definitions:

TRIN Statistic

A technical analysis indicator known as the TRading INdex (TRIN), which compares the number of advancing and declining stocks to their respective volume, aiming to gauge overall market sentiment.

Bearish Signal

An indication in technical analysis or market behavior suggesting that the price of an asset is likely to decline.

Bullish Signal

An indicator suggesting that the price of an asset is likely to increase, often leading investors to buy or hold positions.

Relative Strength

A momentum investing technique comparing the performance of a stock or asset to that of a broader market index to gauge its strength.