When the Federal Reserve Buys Bonds,the Demand Curve for Bonds

question 44

Multiple Choice

When the Federal Reserve buys bonds,the demand curve for bonds:

• A) does not shift.
• B) shifts outward.
• C) shifts inward.
• D) sometimes shifts inward and sometimes shifts outward.

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Definitions:

Replicable

Capable of being repeated or duplicated under similar conditions to achieve a similar result.

Independent Variables

Variables in a scientific experiment that are manipulated or changed by the researcher to determine their effect on the dependent variable.

Clever Hans

Refers to a case study from early 20th century of a horse that was claimed to perform arithmetic and other intellectual tasks, later found to be responding to involuntary cues from humans.

Flashing Signals

Lights that blink on and off to convey messages, warnings, or signals, commonly used in road traffic controls and electronic devices.