If Congress passes legislation reducing Federal Reserve independence, financial market participants are likely to assume that

Discretionary fiscal policy occurs when: a. the government passes a new law that changes tax or spending levels. b. the government borrows funds from the public

c. the Federal Reserve issues new currency notes. d. the Federal Reserve increases the market interest rate.

When the price level falls

A. aggregate demand shifts to the left. B. all prices of individual goods and services decrease. C. aggregate demand shifts to the right. D. aggregate quantity demanded increases.