The Fed Is Concerned That Inflation Might Occur

question 70

Multiple Choice

The Fed is concerned that inflation might occur.To help eliminate this possibility, the Fed could ________ government securities to ________ the federal funds rate in the short run.

• A) buy; lower
• B) buy; raise
• C) sell; lower
• D) sell; raise
• E) sell; not change

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Definitions:

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, marking the beginning of pregnancy.

Chromosomes

Structures within cells that contain DNA and carry genetic information.

Environmental Factors

Environmental Factors encompass all the external conditions and influences affecting the life and development of an organism, including social, cultural, and physical conditions.

Psychological Disorder

A syndrome characterized by clinically significant disturbance in an individual's cognition, emotion regulation, or behavior that reflects a dysfunction in the psychological, biological, or developmental processes underlying mental functioning.