Which of the Following Describes the Chain of Events the Fed

question 34

Multiple Choice

Which of the following describes the chain of events the Fed uses to fight recession?

• A) Raise the federal funds rate target, sell government securities, decrease reserves and loans, increase aggregate demand.
• B) Lower the federal funds rate target, buy government securities, decrease reserves and loans, decrease aggregate demand.
• C) Raise the federal funds rate target, buy government securities, increase reserves and loans, decrease aggregate demand.
• D) Lower the federal funds rate target, buy government securities, increase reserves and loans, increase aggregate demand.

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Definitions:

Syndesmosis

A type of fibrous joint in which bones are joined together by long collagen fibers, allowing for limited movement.

Cartilaginous Joint

A type of joint in the body where the bones are joined together by cartilage, allowing for limited movement.

Cartilaginous Joints

Joints where the bones are attached by cartilage, allowing more limited movement than a synovial joint.

Cartilage

A flexible connective tissue found in various parts of the body including the joints, rib cage, and ear, providing support and cushioning.