All other thing unchanged, when the Fed sells government bonds, it aims to shift the aggregate demand curve to the right.

Name: All other thing unchanged, when the Fed sells government bonds, it aims to shift the aggregate demand curve to the right.
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Question

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When the Fed sells government bonds, it reduces the money supply and increases interest rates, which leads to a decrease in investment and consumption spending. This causes a leftward shift in the aggregate demand curve, not a rightward shift.

All Other Thing Unchanged, When the Fed Sells Government Bonds