If the Fed Increases the Quantity of Reserves, the Federal

question 8

Multiple Choice

If the Fed increases the quantity of reserves, the federal funds rate ________ and the quantity of money ________.

• A) rises; increases
• B) rises; decreases
• C) falls; increases
• D) falls; decreases

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Definitions:

EENT

Acronym for Eyes, Ears, Nose, and Throat, a commonly used term in the medical field to refer to these specific areas collectively.

Suppository

A form of medication designed to be inserted into the rectum, vagina, or urethra, where it dissolves.

Ointment

A semi-solid preparation usually applied to the skin for a therapeutic purpose or as a protective barrier.

Enema

A medical procedure involving the injection of liquid into the rectum to encourage bowel movement or administer medication.