If the Fed Makes an Open Market ________ of Securities,in

question 8

Multiple Choice

If the Fed makes an open market ________ of securities,in the quantity theory M ________ and V ________.

• A) purchase; increases; increases
• B) sale; increases; decreases
• C) purchase; does not change; does not change
• D) sale; decreases; does not change

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Definitions:

Measurements

Measurements refer to the size, length, or amount of something, determined through quantitative comparison with a standard unit.

Element

A fundamental or essential constituent of a composite entity; in contexts like chemistry, an element is a substance that cannot be broken down into simpler substances by chemical means.

Variable

A feature or characteristic that can vary among individuals or over time.

Characteristic

A feature or quality belonging typically to an individual, group, or situation, often used to define or distinguish.