The Fed's Policy Beginning in 1983 Was to Keep the Growth

question 18

Multiple Choice

The Fed's policy beginning in 1983 was to keep the growth in borrowed reserves within some specified range. As a result, the Fed ________.

• A) supplied reserves through open market purchases when borrowed reserves fell.
• B) refused reserves through open market purchases when borrowed reserves rose.
• C) supplied reserves through open market sells when borrowed reserves rose.
• D) supplied reserves through open market purchases when borrowed reserves rose.

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Definitions:

Production Possibilities Curves

A graphical representation showing the maximum number of goods or services that can be produced when efficiently utilizing resources.

Overfarmed

A condition where land is used for agriculture to an excessive extent, leading to degradation of soil quality and diminished crop yields.

Overgrazed

Describes land that has been excessively used by grazing animals, leading to environmental degradation.

Desert

A barren area of landscape where little precipitation occurs, and consequently, living conditions are hostile for plant and animal life.