Which of the Following Describes the Chain of Events the Fed

question 207

Multiple Choice

Which of the following describes the chain of events the Fed uses to fight recession?

• A) Raise the federal funds rate target, sell government securities, decrease reserves and loans, increase aggregate demand.
• B) Raise the federal funds rate target, buy government securities, increase reserves and loans, decrease aggregate demand.
• C) Lower the federal funds rate target, buy government securities, decrease reserves and loans, decrease aggregate demand.
• D) Lower the federal funds rate target, buy government securities, increase reserves and loans, increase aggregate demand.

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Definitions:

ssRNA

Single-stranded RNA, which can act as a template for protein synthesis or be involved in the replication of some viruses.

rRNA

Ribosomal RNA, a type of RNA that, along with proteins, forms the structure of ribosomes and helps synthesize proteins in cells.

dsRNA

Double-stranded RNA, a molecular structure consisting of two complementary strands of RNA which can interfere with gene expression.

Single Stranded DNA

DNA consisting of only one strand, as opposed to the double-stranded structure of typical DNA, often found in some viruses.