Multiple Choice
If the Fed buys bonds in an open market operation,which of the following is most likely to occur?
A) the equilibrium level of GDP will decrease.
B) the money supply will decrease.
C) the aggregate demand curve will shift to the right.
D) the interest rate will rise.
E) the aggregate supply curve will shift to the left.
Correct Answer:
Verified
Correct Answer:
Verified
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