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:

Asthenia

An abnormal physical weakness or lack of energy; often associated with various medical conditions.

Ataxia

Lack of coordination or unsteady movement, often due to a neurological disorder.

Bradykinesia

Slowness of movement, which is a common symptom in neurological disorders such as Parkinson's disease.

Craniectomy

A surgical operation that involves taking out part of the skull to reduce pressure on the brain.