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:

Negotiable Instrument

A formal paper assuring the disbursement of a specified amount of funds, which could be paid either immediately when requested or at a scheduled time, with the document identifying the payor.

Demand Instrument

A type of draft that allows the payee to demand payment at any time from a holder.

Overdue

Pertaining to something that has not been completed, paid, or returned by its expected or agreed-upon deadline.

Liability

The legal responsibility to settle a debt or compensate for harm caused to someone else, often resulting from actions or negligence.