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Economics
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which of the following would cause an increase in aggregate demand in the short run

1. increase interest rates

2. decrease interest rates

3. increase in Tax rates

4. Central Bank selling Government bonds in the open market. 

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Darryn D'Souza
Darryn D'SouzaLv10
31 Oct 2020

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Related questions

Which of the following would cause a rightward shift in the short-run aggregate supply curve?
 
A. An increase in the price level.
B. A technological advance.
C. An increase in interest rates.
D. A decrease in inflation expectations.

1. A restrictive monetary policy by the Fed should lead to:

A. A decrease in investment and an increase in aggregate demand.

B. Leave investment unchanged but decrease aggregate demand.

C. An increase in investment and an increase in aggregate demand.

D. A decrease in investment and a decrease in aggregate demand.

2. When the Federal Reserve uses open market operations (OMO) in an expansionary monetary policy:

A. The Fed will purchase stocks from banks, increasing the monetary base.

B. The Fed will buy bonds from banks, increasing bank reserves and increasing the monetary base.

C.The Fed will lower taxes and increase government spending.

D. The Fed will decrease the discount rate, decreasing the monetary base.

3. A primary goal of monetary policy is to:

A. Eliminate trade barriers from other nations.

B. Maintain high interest rates.

C. Reduce the size of the banking sector.

D. Prevent high rates of inflation.

4. The major tools of monetary policy available to the Federal Reserve System involve:

A. Reserve requirements and tax policy.

B. Reserve requirements and open-market operations.

C. The discount rate and exchange rates.

D. Open-market operations and changing government spending,

In the short run, an increase in the money supply causes interest rates to:

a. increase, and aggregate demand to shift right.

b. increase, and aggregate demand to shift left.

c. decrease, and aggregate demand to shift right.

d. decrease, and aggregate demand to shift left.

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