When the Fed Makes an Open-Market Sale, It

question 20

Multiple Choice

When the Fed makes an open-market sale, it:

• A)increases the money multiplier (m).
• B)increases the currency-deposit ratio
• C)(cr). increases the monetary base (B).
• D)decreases the monetary base (B).

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Definitions:

Prolactin

A hormone produced by the anterior pituitary gland that stimulates milk production after childbirth.

Milk Synthesis

The biological process by which mammary glands produce milk.

Antagonistic Hormones

Hormones that have opposing effects on the body, regulating various physiological functions to maintain homeostasis.

Endocrine Glands

are ductless glands that release hormones directly into the bloodstream, regulating various body functions.