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When the Federal Reserve,the entity that manages money and banking in the United States,announces changes in the supply of money it makes available to banks,it often causes a significant response in financial markets.Based on an understanding of incentives,why is this not surprising?
Hypothalamus
A region of the brain responsible for producing hormones that control bodily functions like temperature, hunger, and sleep.
Infundibulum
A funnel-shaped structure; in the human body, it is part of organs such as the brain (connecting the pituitary gland to the hypothalamus) and the female reproductive system (the fallopian tubes).
Negative Feedback Mechanism
A regulatory process in biological systems where the output of a system inhibits or slows the processes leading to the output, ensuring stability.
Stimulus
Any external or internal factor that influences the activity of a living organism or any of its parts.
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