If the Fed Sells Government Securities, in the Short Run

question 92

Multiple Choice

If the Fed sells government securities, in the short run the nominal interest rate_{--------------------} and the real interest rate_{--------------------}.

• A)does not change; rises
• B)rises; does not change
• C)rises; falls
• D)rises; rises
• E)falls; falls

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Definitions:

Night Terrors

A sleep disorder characterized by high arousal and an appearance of being terrified; unlike nightmares, night terrors occur during N3 sleep, within two or three hours of falling asleep, and are seldom remembered.

Sleep Spindles

Bursts of brain activity visible on an EEG that occur during stage 2 of sleep, thought to be related to learning and memory.

Circadian Rhythms

Natural, internal processes that regulate the sleep-wake cycle and repeat roughly every 24 hours.

Delta Waves

Slow brain waves primarily associated with deep sleep and brain healing processes.