If Most Economic Disturbances Are the Result of Shifts in Money

question 39

Multiple Choice

If most economic disturbances are the result of shifts in money demand, the Fed should

• A)target money supply to regain economic stability
• B)sell government securities whenever interest rates increase
• C)conduct open market purchases whenever interest rates increase
• D)target the total amount of reserves available to the banking system
• E)none of the above

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Definitions:

Spontaneously Aborted

A natural end of a pregnancy before it reaches full term without medical or surgical intervention.

Motility

Self-propulsion.

Sperm

The male reproductive cells that are responsible for fertilizing an egg during reproduction.

Deoxyribonucleic Acid (DNA)

Genetic material that takes the form of a double helix made up of phosphates, sugars, and bases.