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Refer to Figure 15

Question 45

Multiple Choice

Refer to Figure 15.6.Which of the following Fed actions is most likely to decrease the aggregate demand curve from AD<sub>2</sub> to AD<sub>1</sub>? A) Buying bonds in the open market. B) Raising the federal funds rate. C) Lowering the discount rate. D) Decreasing the reserve requirement. Refer to Figure 15.6.Which of the following Fed actions is most likely to decrease the aggregate demand curve from AD2 to AD1?


A) Buying bonds in the open market.
B) Raising the federal funds rate.
C) Lowering the discount rate.
D) Decreasing the reserve requirement.

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