Federal Reserve Actions That Increase Nominal Interest Rates and Decrease

question 138

Multiple Choice

Federal Reserve actions that increase nominal interest rates and decrease the money supply:

• A)close a recessionary gap.
• B)close an expansionary gap.
• C)raise the rate of inflation.
• D)raise bond prices.

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Definitions:

Hungarian Uprising

A nationwide revolt against the Soviet-imposed policies and control in Hungary in 1956, ultimately crushed by Soviet forces.

Eisenhower's Reaction

Refers to the responses and policies implemented by President Dwight D. Eisenhower, particularly relating to foreign affairs and the Cold War.

Eisenhower-Dulles Foreign

Refers to the foreign policy approach of President Dwight D. Eisenhower and Secretary of State John Foster Dulles, emphasizing a strong anti-Communist stance and the strategic use of nuclear deterrence during the Cold War period.

Defense Policies

Strategies and decisions made by a nation to protect its national interests and maintain national security.