If the Interest Rate Is Below a Central Bank's Target

question 71

Multiple Choice

If the interest rate is below a central bank's target, what should the central bank do?

• A) buy bonds to increase the money supply
• B) buy bonds to decrease the money supply
• C) sell bonds to increase the money supply
• D) sell bonds to decrease the money supply

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Definitions:

Thalamus

The brain’s sensory switchboard, located on top of the brainstem; it directs messages to the sensory receiving areas in the cortex and transmits replies to the cerebellum and medulla.

Senses

Biological systems used by organisms to detect and process sensory information from the environment, including sight, hearing, touch, taste, and smell.

Thalamus

A brain structure that acts as a relay station for sensory and motor signals to the cerebral cortex, excluding smell.

Corpus Callosum

The large band of neural fibers connecting the two brain hemispheres and carrying messages between them.