If the Fed's Open-Market Operations Expand the Money Supply, One

question 70

Multiple Choice

If the Fed's open-market operations expand the money supply, one can expect

• A)a decrease in excess reserves.
• B)bond prices to rise.
• C)interest rates to rise.
• D)open-market sales of T-bills.

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Definitions:

Submissive Role

The act or condition of accepting or yielding to the authority or will of another person or group.

Adaptive Behavior

The ability to modify one's behavior in response to changes in the environment or circumstances.

Fringe

In a societal context, refers to ideas or activities that are unconventional or lie at the edge of mainstream acceptance.

Ideas

Concepts, thoughts, or opinions that form in the mind as a result of mental activity and creativity.