If the Fed Wishes to Increase the Interest Rate,it Can

question 9

Multiple Choice

If the Fed wishes to increase the interest rate,it can do so by

• A) selling bonds
• B) buying bonds
• C) increasing the money supply
• D) setting a higher prime lending rate
• E) encouraging the public to buy bonds

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Definitions:

U.S. Constitution

The supreme law of the United States of America, establishing the framework of the national government and the rights of the citizens.

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The procedure through which judges are selected and appointed to the bench, which can vary greatly depending on the country's legal framework and may involve nomination by the executive branch and confirmation by the legislative or another body.

Ideological Preferences

The set of beliefs, values, and opinions that shapes an individual's or group's political perspectives and policy choices.

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