If There Is a Recession, the Fed Would Most Likely

question 85

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.
• E) decrease bank reserves by lowering the legal reserve requirement.

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Definitions:

Naturalistic Observation

A type of correlational study in which some naturally occurring behavior is observed without intervention in the situation.

Behavior

The way in which an organism acts or conducts itself, especially in response to its environment.

Evolutionary Perspective

The evolutionary perspective examines how the process of evolution has shaped the behavior, structure, and functions of living organisms.

Genetic Inheritance

The process through which genes and characteristics are passed down from parents to offspring.