The Fed Can Increase the Money Supply by Conducting Open-Market

question 3

Multiple Choice

The Fed can increase the money supply by conducting open-market

• A)sales or by raising the discount rate.
• B)sales or by lowering the discount rate.
• C)purchases or by raising the discount rate.
• D)purchases or by lowering the discount rate.

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Definitions:

Verbs

A class of words that denote action, occurrence, or a state of being.

Function Morpheme

A morpheme that, while adding such content as time, mode, individuation, and evidentiality, also serves a grammatical purpose (e.g., the suffixes -s and -er, or the connecting words and or if).

Content Morpheme

A morpheme that carries the main semantic and referential content of a sentence. In English content morphemes are usually nouns, verbs, adjectives, or adverbs.

Content Phoneme

The smallest unit of sound that can change the meaning of a word, emphasizing the informational component of speech sounds.