Suppose the U

question 42

Multiple Choice

Suppose the U.S.Treasury issued $50 billion of short-term securities and sold them to the public.Other things held constant,what would be the most likely effect on short-term securities' prices and interest rates?

• A) Prices and interest rates would both rise.
• B) Prices would rise and interest rates would decline.
• C) Prices and interest rates would both decline.
• D) Prices would decline and interest rates would rise.
• E) There is no reason to expect a change in either prices or interest rates.

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Definitions:

Perception

The process by which individuals organize and interpret sensory information to form a meaningful picture of the world.

Central Nervous System

The complex of nerve tissues that controls the activities of the body. In vertebrates, it comprises the brain and the spinal cord.

Stimulant

A type of drug that increases activity in the central nervous system, causing increased alertness, attention, and energy.

Barbiturates

A group of drugs that act as central nervous system depressants, often used medicinally as sedatives, hypnotics, and anticonvulsants.