Multiple Choice
Suppose there is a decrease in short-run aggregate supply.If the Federal Reserve wants to stabilize output it should
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 purchases also move the price level closer to its original level.
D) sell bonds.However these purchase move the price level farther from its original level.
Correct Answer:
Verified
Correct Answer:
Verified
Q10: Which of the following is correct?<br>A)Economic forecasts
Q11: The Fed raised interest rates in 2004
Q12: A policymaker in favor of stabilizing the
Q13: The effects of a decline in the
Q14: If financial turmoil overseas reduces U.S.net exports,then
Q16: If the Fed announced its intention to
Q17: The Federal Reserve will tend to tighten
Q18: Studies have shown significant spending changes arise
Q19: President George W.Bush and congress cut taxes
Q20: Which of the following is an argument