Use the Following to Answer Questions

question 148

Multiple Choice

Use the following to answer questions .
Exhibit: The Bond Market
-(Exhibit: The Bond Market) Suppose the Fed takes action that shifts the demand curve from D to D′, as illustrated in Panel (a) . What happens to the interest rate?

• A) It will increase.
• B) It will decrease.
• C) It remains unchanged.
• D) Short-term interest rates will decrease but long-term interest rates will increase.

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Definitions:

Popliteal

Referring to the area behind the knee where the popliteal artery and vein are located, involved in the circulation to the lower leg.

Descending Aorta

The portion of the aorta that extends downwards from the arch of the aorta, distributing oxygenated blood to the lower parts of the body.

Tunica Media

The middle, muscular layer of the walls of arteries and veins, responsible for regulating the diameter of the vessels.

Smooth Muscle

A type of muscle found in the walls of internal organs such as the intestines and blood vessels, responsible for involuntary movements.