-In the Above Figure, If We Begin at and the Fed

question 191

Multiple Choice

-In the above figure, if we begin at and the Fed buys bonds,

• A) the price of bonds falls, and the interest rate rises.
• B) the price of bonds falls, and so does the interest rate.
• C) the price of bonds rises, and so does the interest rate.
• D) the price of bonds rises, and the interest rate falls.

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Definitions:

Restriction of Productivity

Limitations or constraints that decrease the efficiency or output of a process, system, or individual's work.

Piece Rate Pay

A compensation system where employees are paid based on the amount of work they complete rather than the hours worked.

Hourly Wage

Compensation paid to an employee based on the number of hours worked.

Variable Pay

A portion of employees’ pay that is based on a measure of performance.