10 points Save Answer QUESTION 1 What activity does the Fod undertake when it ca

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10 points Save Answer QUESTION 1 What activity does the Fod undertake when it carries out open-market operations It provides funds so that bealthy depository institutions can purchase weaker ones on the open market b It changes the discount , which pemerally increases the amount of available crodit c It changes the legal neserve nequirements for member bunks dh deals in the purchase and sale of LU.S. govenment securities «hb sand sells the bords, bu sotthe no es, aflaánguscoeponties. 10 points Save Anwer QUESTION 2 If the inflation rae in an cooy is higher than expectod, which of the folowing groups in the society would be most lely to gai ta Workers under oontract without cost ef living adusmmt Persons bolding large amounts of money d.Persos on fixed income e Lmders QUESTION 10 points Save Answer whet goverment purchaes increa ,the spendng maltpler indiales the a siee of the righrwand shith of the agaregite desmand ourve st a gvem price level camount of movetalng the aggregate demand ourve d amount off ovmn along the aggregate sopply curve sie of the nighwed shift of spply curve at a given price lev Save All Answers

Explanation / Answer

1. d) It deals in the purchase and sale of U.S. government securities.

Open market operation is the sale and purchase of government securities by the Federal Reserve to change the supply of money in the ecnonomy.

2. a) Borrowers

Borrowers will pay the same price which had decided while taking loan so inflation reduces the value of money which borrowers pays. So, borrowers will gain while lenders will loose.

3. a) size of the rightward shift of the aggregate demand curve at a given price level.

Increase in government spending shifts AD rightwards.

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