If the Fed Wants to Raise Interest Rates, Then It

question 101

Multiple Choice

If the Fed wants to raise interest rates, then it can use its open market operations to:

• A) increase the money supply.
• B) decrease the money supply.
• C) increase money demand.
• D) decrease money demand.

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Definitions:

Canada

A country located in the northern part of North America, consisting of ten provinces and three territories, extending from the Atlantic to the Pacific Ocean.

Nuclear Family

A family group consisting of parents (usually a mother and father) and their children, living together as a single unit.

Post-World War II

The period following the end of World War II in 1945, marked by significant geopolitical, social, and economic changes worldwide.

Cyclical

Pertaining to events or processes that occur in a repeating pattern or cycle, often observed in economies and natural phenomena.