One News Wire article in the text is titled "Fed Cuts Key Interest Rate Half-Point to 1 Percent." Which of the following is the Fed trying to accomplish as a result of this action?
A. A leftward shift of aggregate demand.
B. A rightward shift of aggregate demand.
C. A leftward shift of aggregate supply.
D. A rightward shift of aggregate supply.
A. A leftward shift of aggregate demand.
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The M1 money supply consists of:
a. only coins and currency held by the nonbank public b. certificates of deposit only. c. coins and currency held by the nonbank public, checkable deposits, and traveler's checks. d. money market mutual fund accounts, savings accounts, and other miscellaneous near-monies. e. only paper currency.
Ceteris paribus, a downward shift in the net exports function will cause:
a. equilibrium real GDP to decrease. b. equilibrium real GDP to increase. c. savings to decrease. d. net exports to increase. e. government budget deficit to decline.