Question: Use UP/DOWN (Q 1-2) and RIGHT/LEFT (Q 3) 1.Howwill the following economic aggregates change if the Fed sells certain amount of the federal government's securities

Use UP/DOWN (Q 1-2) and RIGHT/LEFT (Q 3)

1.Howwill the following economic aggregates change if the Fed sells certain amount of the federal government's securities in an open market?

a.Interest Rates-

b.Planned Investment-

c.Money Demand-

2.Howwill the following economic aggregates change if federal government reduces personal income and corporate taxes?

a.Money Demand-

b.Interest Rates-

c.Planned Investment-

3.Inwhat direction will Aggregate Demand curve shift under the following conditions?

a.Federal government increases spending-

b.Federal government cuts personal income and corporate taxes-

c.Fed contracts money supply-

d.Fed expands money supply-

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