An Increase in the Money Supply Might Indicate That the Fed

question 96

Multiple Choice

An increase in the money supply might indicate that the Fed had

• A)purchased bonds in an attempt to increase the federal funds rate.
• B)purchased bonds in an attempt to reduce the federal funds rate.
• C)sold bonds in an attempt to increase the federal funds rate.
• D)sold bonds in an attempt to reduce the federal funds rate.

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Definitions:

Medical Care

The diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in humans, provided by health professionals.

Housing

The structures or accommodations in which people live, including houses, apartments, and other residential units.

Producer Price Index

An economic indicator that measures the average change over time in the selling prices received by domestic producers for their output.

Basket Of Goods

A fixed set of consumer products and services valued on a regular basis for the purpose of tracking inflation through the consumer price index (CPI).