If the Fed Makes an Open Market __________Of Government Securities

question 53

Multiple Choice

If the Fed makes an open market __________of government securities, the federal funds rate__________ and the immediate impact is to shift the aggregate curve__________.

• A) purchase; rises; supply
• B) purchase; falls; demand
• C) sale; falls; demand
• D) sale; rises; supply

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Definitions:

Continuous Random Variable

A variable that can take an infinite number of possible values in a continuum within a given range, such as any real number between two points.

Continuous Random Variable

A random variable that can take an infinite number of possible values.

Continuous Probability Distribution

A type of probability distribution where the possible outcomes form a continuum and can take on any value within a given range.

Probability Density Function

Probability density function is a function that describes the likelihood of a random variable to take on a given value, primarily used in continuous probability distributions.