Open Market Purchases ________ Reserves and the Monetary Base Thereby

question 55

Multiple Choice

Open market purchases ________ reserves and the monetary base thereby ________ the money supply.

• A)raise;lowering
• B)raise;raising
• C)lower;lowering
• D)lower;raising

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Definitions:

Cognitive Appraisal

Cognitive Appraisal involves the personal interpretation of a situation that ultimately influences the emotional response to that situation.

Lazarus Theory

The theory that a cognitive appraisal is the first step in an emotional response and all other aspects of an emotion, including physiological arousal, depend on it.

Emotional Response

A complex reaction pattern involving experiential, behavioral, and physiological elements, by which an individual attempts to deal with a personally significant matter or event.

Cognitive Aspect

Refers to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, and problem-solving.