Federal Reserve Actions That Increase Nominal Interest Rates and Decrease

question 138

Multiple Choice

Federal Reserve actions that increase nominal interest rates and decrease the money supply:

• A)close a recessionary gap.
• B)close an expansionary gap.
• C)raise the rate of inflation.
• D)raise bond prices.

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Definitions:

Synaptic Gap

The tiny space between neurons across which neurotransmitters travel to transmit signals from one neuron to another.

Terminal Buttons

Small structures at the end of a neuron's axon that release neurotransmitters, facilitating neural communication.

Parkinson Disease

A degenerative neurological disorder marked by tremors, stiffness, and impaired movement and coordination.

Dopamine

A neurotransmitter involved in movement, motivation, and the sensation of pleasure.