When the Fed Buys Bonds

question 85

Multiple Choice

When the Fed buys bonds

• A)the supply of money increases and so aggregate demand shifts right.
• B)the supply of money decreases and so aggregate demand shifts left.
• C)the supply of money decreases and so aggregate demand shifts right.
• D)the supply of money increases and so aggregate demand shifts left.

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Definitions:

Economic Relief

Financial assistance and support provided to individuals, businesses, or economies to alleviate hardship or distress.

Washington

The capital of the United States, formally known as Washington, D.C., it serves as the seat of national government.

Presidential Candidate

An individual running for election to the position of President in a country.

Populists And Democrats

A political coalition wherein populists and the Democratic party in the United States shared interests or goals, especially prominent in the late 19th and early 20th centuries.