If the Fed Wants to Shift Toward a More Expansionary

question 146

Multiple Choice

If the Fed wants to shift toward a more expansionary policy, it often announces that it is going to change the federal funds interest rate. The Fed controls the federal funds interest rate

• A) by imposing legal restrictions that prohibit exchanges at interest rates other than the ones designated by the Fed.
• B) by having the U.S. Treasury fix this interest rate
• C) through its policy of open market operations.
• D) by altering the size of the federal budget deficit or surplus.

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Definitions:

Personality

Personality encompasses the characteristic patterns of thoughts, feelings, and behaviors that make a person unique, influencing how they interact with the world and manage emotions.

Choleric

One of the four traditional temperaments, characterized by a quick, hot temper and a strong, energetic personality.

Hostile

Displaying or characterized by antagonism or aggression towards others.

Heart Attack

A medical condition caused by the blockage of blood flow to the heart muscle, resulting in damage or death of heart tissue.