Multiple Choice
Suppose there is a decrease in aggregate demand.If the Fed wants to stabilize output it could
A) buy bonds.These purchases also move the price level closer to its original level.
B) buy bonds.However these purchases move the price level farther from its original level.
C) sell bonds.These sales also move the price level closer to its original level.
D) sell bonds.However these sales move the price level farther from its original level.
Correct Answer:
Verified
Correct Answer:
Verified
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