When the Fed Makes an Open Market Sale of Bonds

question 65

Multiple Choice

When the Fed makes an open market sale of bonds the _____ of reserves shifts to the

• A) demand, left.
• B) demand, right.
• C) supply, left.
• D) supply, right.

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Definitions:

Phobias

Irrational, intense, persistent fears of certain situations, activities, things, or people, leading to avoidance behavior.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, famously demonstrated by Ivan Pavlov's experiments with dogs.

Operant Conditioning

A method of learning where the intensity of an action is altered by either rewards or penalties.

White Rat

Often used in laboratory experiments, these are albino rats specifically bred for research purposes.