Figure 28-1 -Refer to Figure 28-1. What Should the Federal Reserve Do

question 116

Multiple Choice

Figure 28-1
-Refer to Figure 28-1. What should the Federal Reserve do if it wants to move from point A to point C in the short-run Phillips curve depicted in the figure above?

• A) buy treasury bills
• B) sell treasury bills
• C) raise the discount rate
• D) decrease the money supply
• E) raise taxes

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Definitions:

Refraction Examination

An eye examination in which the patient looks through a succession of different lenses to find out which ones create the clearest image.

Localization of Function

The concept that specific parts of the brain are responsible for specific psychological processes or functions.

Franz Gall

Franz Gall was a neuroanatomist and physiologist known for his development of phrenology, the (now discredited) theory that mental abilities and character traits are determined by the shape of the skull.

William James

An American philosopher and psychologist often referred to as the "Father of American Psychology," known for his contributions to functionalism and pragmatism.