The Fed Directly Stimulates Spending By

question 88

Multiple Choice

The Fed directly stimulates spending by:

• A) limiting the M1 form of money supply.
• B) increasing the interest rates.
• C) encouraging inflation in the market.
• D) buying government securities.

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Definitions:

Functional Fixedness

A problem-solving phenomenon in which people have difficulty in seeing alternate uses for common objects.

String Problem

A type of problem-solving task that involves finding solutions or patterns within sequences of characters or symbols.

Pendulum

A weight suspended from a pivot so that it can swing freely, often used in clocks for regulating time.

Critical Thinking

A type of thinking that involves careful examination of assumptions and evidence and that is purposeful and deliberate.