An Open-Market Purchase of T-Bonds by the Fed Causes the Money

question 27

Multiple Choice

An open-market purchase of T-bonds by the Fed causes the money supply to

• A)fall and bond prices to fall.
• B)rise and bond prices to fall.
• C)rise and bond prices to rise.
• D)fall and bond prices to rise.

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Definitions:

Coracobrachialis

A muscle in the upper arm that acts to flex and adduct the arm at the shoulder joint.

Abduction

Abduction is a movement that draws a limb or part away from the median plane of the body, or the midline of a limb.

Flexor Carpi Ulnaris

A muscle of the forearm that flexes and adducts the wrist, aiding in the movement of the hand.

Extensor Carpi

A group of muscles located in the forearm that function to extend the wrist.