If the Fed is concerned with lowering__________ it will make an open market__________ of government securities, which will shift aggregate demand curve__________ .
A) inflation; purchase; rightward
B) unemployment; sale; leftward
C) unemployment; purchase; leftward
D) inflation; sale; leftward

Question

Quizplus · Accepted Answer

When the Fed is concerned with lowering inflation, it will sell government securities in open market operations, which reduces the money supply, increases interest rates, and shifts the aggregate demand curve leftward.

If the Fed Is Concerned with Lowering__________ It Will Make