When the Fed Buys Bonds in the Open Market, We

question 173

Multiple Choice

When the Fed buys bonds in the open market, we can expect

• A) investment and net exports to rise.
• B) investment will rise and net exports to fall.
• C) investment will fall and net exports to rise.
• D) investment and net exports fall.

---

Definitions:

Economic Activities

Economic activities encompass all actions that involve the production, distribution, and consumption of goods and services within an economy.

Ethical Conduct

The practice of behaving in a manner that is considered morally right, fair, and appropriate in a given context, especially in professional settings.

Manufacturing

The process of producing goods from raw materials through various processes, machinery, and operations, typically in a factory setting.

Retail Companies

Businesses that sell goods directly to consumers, typically operating from physical locations or through online platforms.