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

Question

Quizplus · Accepted Answer

When the Fed is concerned with lowering inflation, it sells government securities in the open market, which reduces the money supply and shifts the aggregate demand curve leftward.

If the Fed Is Concerned with Lowering ________ It Will