If the Fed Makes an Open Market ________ of Government

question 4

Multiple Choice

If the Fed makes an open market ________ of government securities,the federal funds rate will ________ as the quantity of money ________.

• A) purchase; rise; increases
• B) sale; fall; increases
• C) purchase; fall; decreases
• D) sale; rise; decreases

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Definitions:

Perennial Crops

Plants that live for more than two years, providing agricultural output over multiple seasons without needing to be replanted annually.

Fossil Fuel

Natural fuels such as coal, oil, and natural gas, formed from the ancient remains of plants and animals and used for energy.

Soil Erosion

The removal of the top layer of soil at a faster rate than it is formed, due to natural processes like wind and water flow or human activities such as farming.

Soil Erosion

The displacement of the upper layer of soil, causing a loss of fertility and land degradation.