If the Fed Injects Reserves into the Banking System and They

question 78

Multiple Choice

If the Fed injects reserves into the banking system and they are held as excess reserves,then the monetary base ________ and the money supply ________.

• A)remains unchanged;remains unchanged
• B)remains unchanged;increases
• C)increases;increases
• D)increases;remains unchanged

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Definitions:

Sleep

A periodic, natural loss of consciousness—as distinct from unconsciousness resulting from a coma, general anesthesia, or hibernation. Adapted from Dement, 1999.

Brain Consolidates

The process by which the brain converts short-term memories into long-term memories, making them stable and durable.

Information

Data that has been processed or organized in a meaningful way that is valuable for decision-making or understanding a situation.

Memory Construction

Refers to how memories are formed, stored, and reconstructed, often highlighting the fact that memories can be influenced by new information or experiences.