If the Fed Wishes to Reduce Nominal Interest Rates, It

question 14

Multiple Choice

If the Fed wishes to reduce nominal interest rates, it must engage in an open market ________ of bonds that ________ the money supply.

• A)sale; increases
• B)sale; decreases
• C)purchase; decreases
• D)purchase; increases

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Definitions:

Self-determination

The right of people to choose their own form of government and destiny without external influence.

Psychological Empowerment

A state of feeling self-efficacious, having control over one's work, understanding the importance of one's job, and perceiving one's actions as meaningful.

Competence

The ability or skills necessary to perform a task successfully or to a desired standard.

Work Tasks

are specific duties or responsibilities assigned to an individual or team as part of their job.