In the Short Run, If the Fed Wants to Raise

question 55

Multiple Choice

In the short run, if the Fed wants to raise the federal funds rate, it

• A)instructs large commercial banks to sell government securities in the open market.
• B)instructs the New York Fed to sell government securities in the foreign exchange market.
• C)tells large commercial banks to raise their interest rates.
• D)instructs the New York Fed to buy government securities in the open market.
• E)instructs the New York Fed to sell government securities in the open market.

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Definitions:

Psychological Contract

The unwritten and unspoken expectations and beliefs regarding the reciprocal obligations between employees and employers.

Encounter Stage

A phase in organizational socialization when a new employee begins to understand and adjust to the values, skills, and norms required for success in the job and organization.

Anticipatory Socialization

The process through which individuals learn and adopt the values, behaviors, and social skills necessary for future social roles.

Psychological Contract

A perceived agreement between an employee and employer outlining mutual expectations of inputs and outcomes.