after the federal reserve buys bonds, the interest rate changes and aggregate expenditures change, the following will most likely occur

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27-06-2022
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after the federal reserve buys bonds, the interest rate changes and aggregate expenditures change, the following will most likely occur

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jayilych4real jayilych4real · Answer 1 · 2022-06-29T13:07:25+02:00

The next thing to occur would be B. the price level in the economy will rise and the money demand will decrease

What is Interest Rate?

This refers to the amount of money that is added to be paid back on the settlement of a loan.

Hence, we can see that after the federal reserve buys bonds, the interest rate changes and aggregate expenditures change, thus will cause the price level in the economy will rise and the money demand will decrease