In the Short-Run Macro Model,an Open-Market Purchase of Bonds by the Fed

question 173

Multiple Choice

In the short-run macro model,an open-market purchase of bonds by the Fed will

• A) raise the interest rate,reduce spending,and increase output
• B) raise the interest rate,reduce spending,and decrease output
• C) lower the interest rate,reduce spending,and decrease output
• D) lower the interest rate,increase spending,and decrease output
• E) lower the interest rate,increase spending,and increase output

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Definitions:

Tributary Indian Villages

Native American communities that were subjugated by colonial powers to pay tribute, either in goods or labor.

Conquistadors

The soldiers, explorers, and adventurers at the service of the Spanish and Portuguese Empires who established dominion over much of the Americas and Asia from the 15th to 17th centuries.

Voyages of Exploration

Expeditions undertaken from the late 15th century onwards by European powers to discover and map new lands, establishing trade routes and colonies.

Direct Access

The ability to approach or use a service or resource directly, without intermediary agents or systems.