When the Fed Purchases Additional Securities and Shifts to a More

question 53

Multiple Choice

When the Fed purchases additional securities and shifts to a more expansionary monetary policy,

• A) the inflation rate will rise almost immediately.
• B) the growth of output and employment will increase quickly.
• C) several months will typically pass before the shift in policy exerts much impact on output and employment.
• D) this policy will eventually lead to a decline in the general level  of prices if it is continued for a prolonged period of time.

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Definitions:

Electronic Data Interchange

The electronic transfer of data between organizations in a structured format that allows for automated processing.

EDI

Electronic Data Interchange, a standard for exchanging business documents and data electronically between business partners.

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A biometric technique that involves analyzing the pattern of the retinal veins in the back of the eye for identification purposes.

Authentication

A process to verify the identity of a user or system, ensuring that they are who they claim to be.