If the Fed makes an unexpected open market ________ of government securities, th
ID: 1212427 • Letter: I
Question
If the Fed makes an unexpected open market ________ of government securities, the aggregate ________ curve shifts rightward and ________.
A: purchase; demand; the short-run Phillips curve shifts downward
purchase; demand; the long-run Phillips curve shifts rightward
sale; demand; there is a movement along the short-run Phillips curve
sale; supply; the short-run Phillips curve shifts upward
A: purchase; demand; the short-run Phillips curve shifts downward
B:purchase; demand; the long-run Phillips curve shifts rightward
C:sale; demand; there is a movement along the short-run Phillips curve
D:sale; supply; the short-run Phillips curve shifts upward
Explanation / Answer
If the Fed makes an unexpected open market ________ of government securities, the aggregate ________ curve shifts rightward and ________.
A: purchase; demand; the short-run Phillips curve shifts downward
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