When the Fed Buys Bonds Through Open Market Operations It

question 3

Multiple Choice

When the Fed buys bonds through open market operations it gives banks money in return, which ______ banks' ability to lend and _______ aggregate demand.

• A) increases; increases
• B) decreases; increases
• C) increases; decreases
• D) decreases; decreases

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Definitions:

Hostile

Expressing feelings of anger, aggression, or resentment, often resulting in negative interactions.

Person-Oriented

An approach or perspective focusing on understanding and analyzing individuals' complexities, typically in contrast to variable-oriented approaches.

Aggression Stability

The consistency over time in aggressive behavior patterns, indicating that the tendency towards aggression can be a persistent aspect of personality.

Diminish

To reduce or make less in size, importance, or intensity over time or through certain circumstances.