ckboard Learn Done Graded H O lowering the discount rate. an increase in the mon

Question

ckboard Learn Done Graded H O lowering the discount rate. an increase in the money supply. 6. Which is a tool used by the Federal Reserve in the conduct of monetary policy? O issuing new government bonds and retiring old ones buying and selling corporate bonds changes in the prime rate ( buying and selling federal government bonds 7. The short-run effect of a decrease in the money supply is that the aggregate price level: O increases, and real output also increases. decreases, and real output also decreases. decreases, and real output increases. increases, and real output decreases. 8. If interest rates rise there will be a(n): increase in the money supply decrease in aggregate demand increase in aggregate demand increase in aggregate supply

Explanation / Answer

6.

buying and selling of federal government bonds

the above is answer .This is also called as open market operations

7. is alreay shown as correct, so i am not answering that

8.

decrease in the aggregate demand

the above is answer because higher interest rates would reduce consumption and investment due to high cost of borrowing resulting decline in aggregate demand

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