Sterilization Occurs When the Fed

question 71

Multiple Choice

Sterilization occurs when the Fed

• A) offsets the effects of international currency flows with a protectionist trade policy.
• B) directs a permanent increase of the money supply.
• C) offsets the effects of a foreign exchange market intervention with domestic open market operations.
• D) implements a fixed exchange rate system.
• E) changes the domestic prime lending rate in response to foreign exchange market intervention.

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Definitions:

Prosocial Form

Behaviors or actions intended to benefit others or society as a whole, promoting positive social interactions and relationships.

Affective Energy

Refers to the dynamic emotional forces that drive social interactions and relationships.

Social Contagion

Refers to the spread of behaviors, attitudes, and affect through crowds and social networks.

Projective Identification

A psychological concept where individuals project their own emotions or desires onto others, who then may internalize and exhibit those projected feelings or behaviors.