The Chair of the Federal Reserve Bank Spoke to the American

question 147

Multiple Choice

The chair of the Federal Reserve Bank spoke to the American public. The message she conveyed is that Fed economists are worried about inflation and believe the best course of action would be to slow the economy. Which of the following policies is the Fed most likely to pursue?

• A) Increase taxes
• B) Decrease interest rates
• C) Restrict the money supply and increase interest rates
• D) Devalue the dollar on international currency exchanges

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Definitions:

Leptin

A hormone produced by fat cells that helps to regulate energy balance by inhibiting hunger.

Fat Cells

Cells that store energy in the form of fat, also known as adipocytes.

Glucagon

A hormone produced by the pancreas that raises blood glucose levels by promoting the breakdown of glycogen to glucose in the liver.

Anorexia Nervosa

An eating disorder characterized by an obsessive fear of gaining weight, leading to severe dietary restriction and weight loss.