If the Fed Wants to Use "Open Market Operations" to Decrease

question 110

Multiple Choice

If the Fed wants to use "open market operations" to decrease the money supply,it would

• A)increase the federal funds rate.
• B)issue more federal government debt.
• C)sell U.S.government securities (bonds)to the general public.
• D)increase the required reserve ratio.

---

Definitions:

Bandwagon Fallacy

The misleading argument that something is true, good, or desired because many other people believe in it or do it.

Argumentum Ad Baculum

A logical fallacy in which an argument is made through appeal to force or threat instead of reason.

Circular Reasoning

A logical fallacy in which the conclusion of an argument is used as a premise of the same argument.

Argumentum Ad Hominem

A logical fallacy where an argument is countered by attacking the character, motive, or other attributes of the person making the argument, rather than addressing the substance of the argument itself.