When the Fed Sells Bonds in the Open Market, We

question 52

Multiple Choice

When the Fed sells bonds in the open market, we can expect

• A) investment and net exports to rise.
• B) investment to rise and net exports to fall.
• C) investment to fall and net exports to rise.
• D) investment and net exports to fall.

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Definitions:

Interstate Commerce

Commercial transactions or movement of goods and services that cross state boundaries within the United States.

Regulatory Reach

The extent to which government agencies can enforce rules and regulations governing individuals, businesses, and other entities.

Enumerated Powers

Specific powers granted to Congress as outlined in Article 1, Section 8 of the U.S. Constitution.

Congress

Congress is the bicameral legislature of the federal government in the United States, consisting of two houses: the Senate and the House of Representatives.