The Ripple Effects That Occur When the Fed Sells Securities

question 5

Multiple Choice

The ripple effects that occur when the Fed sells securities in the open market include .

• A) a decrease in interest rates
• B) an increase in net exports
• C) an increase in short- run aggregate supply
• D) a decrease in consumption and investment

---

Definitions:

General Happiness

A subjective measure of an individual's overall well-being and contentment with life, often studied in the fields of psychology and sociology.

Rule Of Law

The principle that all individuals, institutions, and entities are accountable to laws that are publicly promulgated, equally enforced, and independently adjudicated.

Pluralistic Ignorance

A psychological state where individuals mistakenly believe their thoughts, feelings, or behaviors are different from those of the group.

Emergency Situation

A sudden, urgent, usually unexpected occurrence or condition that requires immediate action.