If the Fed Wanted to Maintain a Constant Interest Rate

question 12

Multiple Choice

If the Fed wanted to maintain a constant interest rate after an increase in government spending, it would need to

• A)buy government securities in open market operations
• B)sell government securities in open market operations
• C)raise reserve requirements
• D)increase the primary credit rate (the discount rate)
• E)increase the currency-deposit ratio

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Definitions:

Examine If Closed

A control system operation that checks whether a specific circuit or contact is in a closed (energized) state.

Examine If Open

Examine If Open is a control logic command used in programming, often in PLCs, to check if a circuit or contact is open before executing further instructions.

Output Energize

A control logic action used in programmable logic controllers (PLCs) to activate an output device.

Input Energize

The process by which an input signal activates or powers a circuit or device.