If the Fed Has Announced That It Plans on Lowering

question 321

Multiple Choice

If the Fed has announced that it plans on lowering the interest rate it will

• A) engage in expansionary open market operations, thereby decreasing the money supply.
• B) engage in expansionary open market operations, thereby increasing the money supply.
• C) engage in contractionary open market operations, thereby decreasing the money supply.
• D) engage in contractionary open market operations, thereby increasing the money supply.

---

Definitions:

Reliability and Validity

Key measures in research and testing, where reliability refers to consistency across time or different observers, and validity measures the accuracy and truthfulness of a test or research finding.

Objective Personality Testing

Multiple-choice or true/false type formats that assess various aspects of personality. Often used to increase client insight, to identify psychopathology, and to assist in treatment planning. It is a type of personality test.

Ability Assessment

The evaluation of an individual's skills, talents, or intellectual capacities, often through standardized testing.

Paper-And-Pencil Tests

Traditional forms of assessment where responses are given on paper, often used for educational or psychological examinations.