If the Economy Is Inflationary, the Fed Would Most Likely

question 95

Multiple Choice

If the economy is inflationary, the Fed would most likely:

• A) encourage banks to provide loans by buying government securities.
• B) encourage banks to provide loans by raising the discount rate.
• C) encourage banks to provide loans by selling government securities.
• D) restrict bank lending by selling government securities.
• E) restrict bank lending by lowering the federal funds rate.

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Definitions:

System Unit

The metal or plastic case that holds all the physical parts of the computer together, including the computer’s processor (its brains), its memory, and the many circuit boards that help the computer function.

Pixel

A single point that creates the images on a computer monitor. Pixels are illuminated by an electron beam that passes rapidly back and forth across the back of the screen so that the pixels appear to glow continuously.

Hertz

A unit of frequency equal to one cycle per second, used to measure the frequency of oscillations and vibrations.

Bit

The most basic unit of data in computing and digital communications, which can have a value of either 0 or 1.