If the Fed Wants to Use "Open Market Operations" to Decrease

question 110

Multiple Choice

If the Fed wants to use "open market operations" to decrease the money supply,it would

• A)increase the federal funds rate.
• B)issue more federal government debt.
• C)sell U.S.government securities (bonds)to the general public.
• D)increase the required reserve ratio.

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Definitions:

Public Relations

A process of strategic communication aimed at developing beneficial relationships between organizations and their stakeholders.

Feedback Loop

A process in which the outputs of a system are circled back and used as inputs to improve or modify the system's performance.

Hierarchy Of Effects

The sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action that includes awareness, interest, evaluation, trial, and adoption of the product.

Communication Process

The method by which information is transmitted and received between a sender and a receiver, encompassing elements like encoding, medium of transmission, decoding, and feedback.