If the Fed Increases the Money Supply

question 15

Multiple Choice

If the Fed increases the money supply,

• A)the interest rate increases, which tends to raise stock prices.
• B)the interest rate increases, which tends to reduce stock prices.
• C)the interest rate decreases, which tends to raise stock prices.
• D)the interest rate decreases, which tends to reduce stock prices.

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Definitions:

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.

Predict

The act of forecasting future values or outcomes based on historical data or trends.

Graphical Display

The visual representation of data or information, typically in the form of charts, graphs, or tables.

Points

In various contexts, it can refer to a unit of scoring in games and sports, a location in space, or a particular detail or aspect of something.