When the Fed Sells Bonds to the Bank and the Public

question 179

Multiple Choice

When the Fed sells bonds to the bank and the public, the expected result is that

• A)the supply of federal funds will fall, the federal funds rate will rise, and a contraction of the money supply will occur.
• B)the supply of federal funds will rise, the federal funds rate will fall, and an expansion of the money supply will occur.
• C)the supply of federal funds will fall, the federal funds rate will fall, and an expansion of the money supply will occur.
• D)the supply of federal funds will rise, the federal funds rate will rise, and a contraction of the money supply will occur.

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Definitions:

Grammaticality

concerns the conformity to the rules of grammar of a particular language.

Age

The length of time that a person or entity has existed from its birth or creation to a given point.

Whorfian Hypothesis

The theory that the structure of a language determines or greatly influences the modes of thought and behavioral characteristic of the culture in which it is spoken.

Brain Organization

The way in which the brain's structures and functions are arranged and interact with each other to process information and control behaviors.