Multiple Choice
If the Fed conducts an open market sale of bonds,which of the following will happen?
A) The interest rate will decrease,the aggregate expenditure line will shift upward and the aggregate demand curve will shift rightward
B) The interest rate will decrease,the aggregate expenditure line will shift downward and the aggregate demand curve will shift rightward
C) The interest rate will increase,the aggregate expenditure line will shift downward and the aggregate demand curve will shift leftward
D) The interest rate will decrease,the aggregate expenditure line will shift upward and the aggregate demand curve will shift leftward
E) The interest rate will increase,the aggregate expenditure line will shift downward and the aggregate demand curve will shift rightward.
Correct Answer:
Verified
Correct Answer:
Verified
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