The Fed Can Increase the Federal Funds Rate by

question 104

Multiple Choice

The Fed can increase the federal funds rate by

• A)Selling government bonds,which causes market interest rates to rise.
• B)Buying government bonds.
• C)Simply announcing a higher rate because the Fed has direct control of this interest rate.

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Definitions:

Orexin

A neuropeptide that regulates arousal, wakefulness, and appetite, playing a significant role in sleep-wake cycles.

Lateral Hypothalamus

An area of the brain that regulates hunger and thirst.

Ventromedial Hypothalamus

A region of the hypothalamus involved in regulating hunger and satiety signals, playing a critical role in energy homeostasis and weight regulation.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors.