Refer to the Given Figure Where the Nominal Interest Rate

question 38

Multiple Choice

Refer to the given figure where the nominal interest rate equals 6 percent and the money supply equals 600. If the Federal Reserve wants to set the nominal interest rate at 10 percent, it must conduct open market ________ to set the money supply at ________.

• A)purchases; 200
• B)sales; 200
• C)purchases; 800
• D)sales; 800

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Definitions:

Blocking Dopamine

The process of inhibiting the action of dopamine, a neurotransmitter involved in many functions including mood, motivation, and reward.

Acetylcholine

A neurotransmitter in both the central and peripheral nervous systems that plays a key role in muscle activation, memory formation, and learning.

Hypothalamus

A small but influential brain structure that regulates hunger, thirst, sexual behavior, internal body temperature, other body functions, and a wide variety of emotional behaviors.

Mental Hospitals

Medical institutions specializing in the treatment and care of patients with severe mental disorders.