If the Fed Makes Open Market Purchases of Bonds

question 244

Multiple Choice

If the Fed makes open market purchases of bonds,

• A) the money supply increases by more than the amount of bonds purchased.
• B) the money supply increases by less than the amount of bonds purchased.
• C) the money supply decreases by more than the amount of bonds purchased.
• D) the money supply decreases by less than the amount of bonds purchased.

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Definitions:

Intrapersonal Learner

An individual who prefers learning through introspection, self-study, and reflection, often understanding their own thoughts and feelings best.

Four-Temperament Profile

A personality classification system that divides individuals into four categories based on behavior traits: sanguine, choleric, melancholic, and phlegmatic.

Supporter

A person who tends to be cooperative, honest, sensitive, warm, and understanding.

Bodily/Kinesthetic Learner

A learning style where individuals learn best through physical activities like moving, doing hands-on tasks, and using body language.