If the Fed Adopts a Policy of Pegging the Interest

question 23

Multiple Choice

If the Fed adopts a policy of pegging the interest rate,a ________ in government spending forces the Fed to increase the money supply to prevent interest rates from ________.

• A)fall;increasing
• B)fall;decreasing
• C)rise;decreasing
• D)rise;increasing

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Definitions:

Recency Effect

A memory bias that favors the recall of the most recently presented information over older information.

Complex Information

Information that is detailed, intricate, and challenging to understand or process.

Visible Demographic Group

A segment of the population that can be easily identified or recognized based on visible characteristics, such as race, gender, or age.

Johari Window

A model that helps people understand their relationship with themselves and others, involving four quadrants representing known, hidden, blind, and unknown aspects of one's self.