Figure 11-4 -Refer to Figure 11-4.If the Fed Acts to Close the Acts

question 27

Multiple Choice

Figure 11-4

-Refer to Figure 11-4.If the Fed acts to close the output gap in Panel (a) , it would ____ government bonds which will lead to the shift in demand for bonds in Panel (b) .This action will raise the price of bonds and _______ the interest rate.

• A)sell; lower
• B)buy; increase
• C)buy; lower
• D)sell; increase

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Definitions:

Humerus

The long bone in the upper arm that runs from the shoulder to the elbow, connecting with several muscles and joints.

Pectoralis Major

A large muscle in the upper chest that helps in the movement of the shoulder and arm.

Diaphragm

A large, dome-shaped muscle located at the base of the lungs and thoracic cavity, essential for the process of breathing.

External Intercostals

Muscles found between the ribs that aid in the mechanics of breathing by elevating the ribcage.