If the Fed's Policies Aim to Increase Aggregate Demand,the Fed

question 118

Multiple Choice

If the Fed's policies aim to increase aggregate demand,the Fed must fear

• A)inflation.
• B)recession.
• C)stagflation.
• D)a supply shock that decreases potential GDP.
• E)a supply shock that increases aggregate supply.

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Definitions:

Certified Check

A type of check for which the issuing bank guarantees the availability of funds by verifying the drawer's signature and setting aside the check amount.

Bank's Signature

An authorized signature from a bank representative, used to validate or authorize transactions and documents.

Certified Checks

Checks guaranteed by a bank, verifying that the signature is genuine and that the check writer has sufficient funds in their account.

Day Of Deposit

The day on which funds are deposited into a bank account, which starts the process of the funds being cleared and made available for use.