Suppose the Bank of China Permanently Decreases Its Purchases of U.S

question 217

Multiple Choice

Suppose the Bank of China permanently decreases its purchases of U.S. government bonds and,instead,holds more dollars on deposit at the Federal Reserve. Everything else held constant,a open market ________ would be the appropriate monetary policy action for the Fed to take to offset the expected ________ in the monetary base in the United States.

• A)purchase;decrease
• B)purchase;increase
• C)sale;decrease
• D)sale;increase

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Definitions:

Formal Communication Channels

Established pathways for message flow within an organization, often documented and hierarchical, such as memos, email, and reports.

Formal Structure

The officially designated arrangement of roles, responsibilities, and relationships within an organization.

Authority

The officially sanctioned power or right to make decisions, direct others, and enforce obedience within a specific context or organization.

Patterns of Communication

Patterns of communication are the typical pathways and methods through which information is shared among members within an organization or social group.