Figure 3 Price Level AS AD Real GDP 26. In figure 3, if investment rises, then:

Question

Figure 3 Price Level AS AD Real GDP 26. In figure 3, if investment rises, then: a. aggregate demand falls b. aggregate demand rises c. aggregate supply falls d. aggregate supply rises e. none of the above 27. In figure 3, to decrease the money supply, the FED could a. raise the discount rate b. raise required reserve ratios c. sell bonds on the open market d. all of the above e. none of the above 28. In figure 3, to increase AD, the FED could a. raise the discount rate b. lower investment c. buy bonds on the open market d. all of the above e. none of the above 29. In figure 3, if the FED decreases the money supply then a. aggregate demand falls b. aggregate demand rises c. aggregate supply falls d. aggregate supply rises e. none of the above 30. The Board of Governors of the FED: a. are elected by member banks b. serve 14 years terms c. control the economy d. all of the above e. none of the above

Explanation / Answer

26. None of the above

27.d. all of the above

28. C. Buy bondson the open market.

29. A. AD falls.

30. B. Serve 14 years terms

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