If the Fed Wants to Shift Toward a More Expansionary

question 146

Multiple Choice

If the Fed wants to shift toward a more expansionary policy, it often announces that it is going to change the federal funds interest rate. The Fed controls the federal funds interest rate

• A) by imposing legal restrictions that prohibit exchanges at interest rates other than the ones designated by the Fed.
• B) by having the U.S. Treasury fix this interest rate
• C) through its policy of open market operations.
• D) by altering the size of the federal budget deficit or surplus.

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Definitions:

Psychodynamic Therapy

A therapy that focuses on revealing and resolving unconscious conflicts based on the principles of psychodynamic psychology.

Behavioral Conditioning Therapy

A method of treatment that uses principles of learning, such as conditioning and reinforcement, to alter behavior.

Claustrophobia

An anxiety disorder characterized by an irrational fear of being in enclosed or narrow spaces, leading to panic attacks in severe cases.

Cognitive Therapy

A form of psychotherapy that emphasizes the importance of thinking in how we feel and what we do, aiming to change negative patterns of thinking.