How Can the Fed Offset a Positive Shock to Aggregate

question 241

Multiple Choice

How can the Fed offset a positive shock to aggregate demand?

• A) Increase the growth rate of the money supply.
• B) Decrease the growth rate of the money supply.
• C) Increase the growth rate of government spending.
• D) Decrease the growth rate of government spending.

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Definitions:

Isometric Drawing

A method of visual representation of a three-dimensional object, drawn on a two-dimensional surface where the three principal axes appear equally foreshortened.

Decimal Point

A dot or small symbol used to separate the integer part from the fractional part of a number in decimal notation.

Fractional-Inch

A unit of measurement in the customary system used in the United States, where measurements are expressed in fractions of an inch.

Reamers

Tools used to widen the size of a hole to precise dimensions and to improve its finish.