All Else Equal, If the Fed Engages in a Repo

question 210

Multiple Choice

All else equal, if the Fed engages in a repo transaction, then it means the Fed is attempting to

• A) decrease the money supply.
• B) increase the money supply.
• C) foreclose on a failed bank.
• D) raise interest rates.

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Definitions:

Fascist Movements

Political movements characterized by dictatorial power, forcible suppression of opposition, as well as strong regimentation of society and the economy.

Communist Party

A political party advocating for the principles of communism, including the abolition of private property and the establishment of a society in which all goods are commonly owned.

New Deal

A collection of initiatives, including public infrastructure projects, economic reforms, and regulatory measures, introduced by President Franklin D. Roosevelt in the US during the 1930s as a reaction to the Great Depression.

Populist Challengers

Political actors or movements that claim to represent the common people, often against the elite or established institutions.