If Aggregate Demand Shifts Because of a Wave of Optimism

question 125

Multiple Choice

If aggregate demand shifts because of a wave of optimism about stock prices, those who favor a policy that "leans against the wind" would advocate the

• A)Federal Reserve increase the money supply or the government increase taxes.
• B)Federal Reserve increase the money supply or the government decrease taxes.
• C)Federal Reserve decrease the money supply or the government increase taxes.
• D)Federal Reserve decrease the money supply or the government decrease taxes.

---

Definitions:

Normally Distributed

Describes a statistical distribution where the arrangement is balanced around the mean, indicating that observations close to the mean happen more often than those further away.

Regression Line

A line of best fit through a dataset in regression analysis, showing the relationship between the independent and dependent variables.

Sum Of Squares

The total of the squared differences between each observation and the overall mean.

Data Points

Individual pieces of factual information recorded and used for the purpose of analysis.