In Figure 15

question 6

Multiple Choice

In Figure 15.3,the Fed can use all of the following to decrease the equilibrium interest rate from 6 percent to 2 percent except

• A)Decreasing the reserve requirement.
• B)Selling bonds.
• C)Buying bonds.
• D)Decreasing the discount rate.

---

Definitions:

Symmetrical Area

An area in a statistical distribution where two portions on either side of the center are mirror images of each other.

Discrete Probability Distributions

Probability distributions that deal with discrete random variables, quantifying the probabilities of different outcomes.

Continuous Probability Density Functions

Mathematical functions that describe the likelihood of all possible values of a continuous random variable.

Z-score

A numerical indicator that shows how a value compares to the average of a set of values, expressed as the number of standard deviations away from the mean.