If the Fed Increases Its Open Market Purchases of Government

question 94

Multiple Choice

If the Fed increases its open market purchases of government securities,it exerts a downward pressure on the interest rate.Such a phenomenon is usually referred to as the ___________________ effect.

• A) income
• B) substitution
• C) open market
• D) liquidity
• E) expectations

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Definitions:

Government Intentions

The planned or proposed objectives and goals of a governing body, often outlined in policy documents, speeches, or legislative actions.

Land And Resources

The natural assets of a geographical area, including its land, water, minerals, and biological resources.

Oral Traditions

The practice of passing stories, history, and knowledge through spoken word from generation to generation.

Cultural Values

The core principles and ideals upon which an entire community exists and operates, influencing behaviors, traditions, and norms.