If the Fed Buys $150 Billion of U

question 24

Multiple Choice

If the Fed buys $150 billion of U.S.bonds in the open market and the reserve requirement is 5 percent,M1 will eventually

• A)Increase by $3,000 billion.
• B)Decrease by $3,000 billion.
• C)Increase by $300 billion.
• D)Decrease by $300 billion.

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Definitions:

State-By-State

A method or approach that considers or addresses each U.S. state individually rather than as part of a collective whole.

Legalize

The process of making certain actions, substances, or behaviors lawful and permissible by official, statutory means.

Pendleton Civil Service Act

U.S. legislation enacted in 1883 that established the Civil Service Commission and marked the beginning of a merit-based system for federal employment instead of jobs being awarded based on political affiliation.

Bribery

The act of giving, offering, receiving, or soliciting something of value to influence the actions of an official or other person in charge of a public or legal duty.