The Table Below Shows the Net Effect of an Open

question 44

Multiple Choice

The table below shows the net effect of an open market operation undertaken by the Fed. Use it to answer the following question.

-The Fed can decrease the money supply by

• A) selling government securities.
• B) raising taxes.
• C) lowering reserve requirements.
• D) lowering discount rates.
• E) decreasing government spending.

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Definitions:

All-or-none Principle

A principle stating that a neuron either fires at full amplitude or not at all, depending on whether the stimulus reaches the threshold level.

CNS

The central nervous system, consisting of the brain and spinal cord, responsible for processing and sending messages to and from the body.

Presbycusis

Age-related hearing loss, typically occurring in both ears, progressing gradually as a person ages.

-cusis

A suffix pertaining to hearing, used in medical terms related to hearing conditions.