If the Fed Wants to Reduce the Money Supply

question 139

Multiple Choice

If the Fed wants to reduce the money supply,

• A) it increases the discount rate.
• B) it decreases the discount rate.
• C) both A and B
• D) none of the above

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Definitions:

Amnesia

A loss of memory due to brain injury, disease, or psychological trauma, affecting one's ability to recall past experiences.

Prefrontal Cortex

A part of the brain located in the frontal lobe, associated with decision making, social behavior, personality, and cognitive planning.

Confabulations

Involves the creation of false memories without the intention to deceive, often occurring in patients with certain brain injuries or diseases.

Anterograde Amnesia

A condition where a person is unable to form new memories following a traumatic event, though long-term memories from before the event may remain intact.