If the Fed Conducts an Open Market Sale of Bonds,which

question 92

Multiple Choice

If the Fed conducts an open market sale of bonds,which of the following will happen?

• A) The interest rate will decrease,the aggregate expenditure line will shift upward and the aggregate demand curve will shift rightward
• B) The interest rate will decrease,the aggregate expenditure line will shift downward and the aggregate demand curve will shift rightward
• C) The interest rate will increase,the aggregate expenditure line will shift downward and the aggregate demand curve will shift leftward
• D) The interest rate will decrease,the aggregate expenditure line will shift upward and the aggregate demand curve will shift leftward
• E) The interest rate will increase,the aggregate expenditure line will shift downward and the aggregate demand curve will shift rightward.

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Definitions:

Feeling States

Emotional conditions or responses that are experienced by individuals, influenced by external and internal factors.

Physiological Tendencies

Inherent biological or bodily inclinations that influence behavior, reactions, and physical states of an individual.

Attitudes

A psychological construct representing an individual's degree of like or dislike for an item.

Psychological Tendencies

Patterns or propensities in thought, emotion, and behavior that are characteristic of an individual, influencing their psychological responses and interactions.