If the Fed Sells Bonds And, Thereby, Unexpectedly Shifts to a More

question 46

Multiple Choice

If the Fed sells bonds and, thereby, unexpectedly shifts to a more restrictive monetary policy, in the short run, the primary impact of this policy will tend to

• A) increase inflation.
• B) reduce unemployment.
• C) increase real output.
• D) increase real interest rates.

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Definitions:

Correct Meaning

A rephrased explanation or interpretation of a word, phrase, or concept that is accurate or true.

Growth Hormone

A hormone produced by the pituitary gland that stimulates growth, cell reproduction, and regeneration in humans and other animals.

Correct Abbreviation

The approved or standard shortening of words or phrases, particularly in professional or academic contexts to ensure clarity and uniformity.

FBS

Fasting blood sugar; a test measuring the glucose levels in blood after a period of fasting to assess for diabetes or pre-diabetes.