If There Is a Recession, the Fed Would Most Likely

question 40

Multiple Choice

If there is a recession, the Fed would most likely:

• A) increase bank reserves by raising the discount rate.
• B) increase bank reserves by buying government securities.
• C) decrease bank reserves by raising the discount rate.
• D) decrease bank reserves by selling government securities.

---

Definitions:

Phonology

The study of the sound system in languages, including the rules for their sequence and structure.

Morpheme

The smallest grammatical unit in a language that has semantic meaning.

Anthropologist Benjamin Whorf

A linguist and anthropologist known for his hypothesis that the structure of a language affects its speakers' cognition and worldview.

Vocabulary

Vocabulary consists of the words known and used by a person in speech and writing, reflecting their language proficiency and knowledge.