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:

Deductive Reasoning

The use of general principles to predict specific outcomes. Often uses “if… then” statements.

Technology

The application of scientific knowledge for practical purposes, especially in industry.

Chemicals

Substances produced by or used in a chemical process, including both natural and synthetic materials.

Ecosystem

A group of living beings interacting with the nonliving elements of their surroundings, functioning together as a system.