Growth in aggregate demand will cause deflation. increase unemployment. move the
ID: 1211049 • Letter: G
Question
Growth in aggregate demand will
cause deflation.
increase unemployment.
move the economy to a higher point on the short-run Phillips curve.
cause the short-run Phillips curve to shift to the left.
Question 32
When the Fed decided to buy long-term Treasury securities while selling an equal amount of shorter-term treasury securities to keep long-term interest rates low, it was following a strategy known as
securitization.
operation twist.
quantitative easing.
indirect finance.
cause deflation.
increase unemployment.
move the economy to a higher point on the short-run Phillips curve.
cause the short-run Phillips curve to shift to the left.
Question 32
When the Fed decided to buy long-term Treasury securities while selling an equal amount of shorter-term treasury securities to keep long-term interest rates low, it was following a strategy known as
securitization.
operation twist.
quantitative easing.
indirect finance.
Explanation / Answer
The correct answer is option (C). The growth in aggregate demand will move the economy to a higher point on the short-run Phillips curve.
(32) The correct answer is option (C) Quantative easing
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.