If the Fed Increases the Supply of Money in the Market

question 85

Multiple Choice

If the Fed increases the supply of money in the market through open market operations, bond prices will _____ and interest rates will _____.

• A) fall; rise
• B) rise; fall
• C) rise; rise
• D) fall; fall

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Definitions:

Cerebellum

A part of the brain located at the back of the skull, responsible for coordinating voluntary movements, balance, and posture.

Thalamus

A brain structure that acts as a relay station, processing and transmitting sensory information to the appropriate areas of the brain.

Hippocampus

A part of the brain within the temporal lobe involved in memory formation, organization, and retrieval, as well as spatial navigation.

Sperling's Experiment

A psychological experiment conducted by George Sperling that demonstrated the existence of visual sensory memory.