If the Fed Buys Bonds in an Open Market Operation,which

question 36

Multiple Choice

If the Fed buys bonds in an open market operation,which of the following is most likely to occur?

• A) the equilibrium level of GDP will decrease.
• B) the money supply will decrease.
• C) the aggregate demand curve will shift to the right.
• D) the interest rate will rise.
• E) the aggregate supply curve will shift to the left.

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Definitions:

Resistance Movement

A coordinated action by a segment of a country's civilian population aimed at opposing the officially recognized government or an occupying force, while aiming to disturb the peace and stability of the society.

Intercolonial Congress

A meeting or assembly between colonies, especially concerning early American history, focused on collaboration and addressing common issues.

Coercive Acts

A series of British laws passed in 1774 aimed at punishing the Massachusetts colonists for the Boston Tea Party.

Quebec Acts

Legislative acts of the British Parliament in 1774 intended to provide a framework for the governance of the Quebec Province, including religious freedom for Catholics and restoration of French civil law.