Which of the Following Generally Occurs When a Central Bank

question 57

Multiple Choice

Which of the following generally occurs when a central bank pursues contractionary monetary policy?

• A)the central bank purchases bonds and the interest rate increases.
• B)the central bank purchases bonds and the interest rate decreases.
• C)the central bank sells bonds and the interest rate increases.
• D)the central bank sells bonds and the interest rate decreases.

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Definitions:

Medicare

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A situation where individuals are judged based on the average characteristics of their group instead of their own specific attributes or merits.

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The act of an employer providing employment to a job applicant or candidate.

Female Students

Students who identify as female and are engaged in the pursuit of education at various academic levels.