Suppose There Is a Decrease in Aggregate Demand

question 33

Multiple Choice

Suppose there is a decrease in aggregate demand.If the Fed wants to stabilize output it could

• A)buy bonds.These purchases also move the price level closer to its original level.
• B)buy bonds.However these purchases move the price level farther from its original level.
• C)sell bonds.These sales also move the price level closer to its original level.
• D)sell bonds.However these sales move the price level farther from its original level.

---

Definitions:

Array Names

Identifiers used to refer to the entire array as a single entity.

Offsets

A numeric value representing the distance from a specific point in a data structure, used to locate particular elements.

Expressions

Combinations of variables, operations, and values that are evaluated to produce another value in programming.