If the Fed Wishes to Reduce Aggregate Demand, It Will

Multiple Choice

If the Fed wishes to reduce aggregate demand, it will conduct an open market

A) sale which will lower bond prices, lower interest rates, and stimulate investment.
B) purchase which will lower bond prices, lower interest rates, and discourage investment.
C) sale which will lower bond prices, raise interest rates, and discourage investment.
D) purchase which will raise bond prices, lower interest rates, and stimulate investment.